Question

The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. 

Required: 

Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.)

Answer 1

Federal Sport Apparel
Income Statement
For the Year Ended 2020 and 2021
	2022	2021
	Amount	%	Amount	%
Net Sale	18,400,000	100.0%	15,100,000	100.0%
Cost of Goods Sold	13,358,400	72.6%	6,764,800	44.8%
Gross Profit	5,041,600	27.4%	8,335,200	55.2%
Operating Expense	1,490,400	8.1%	1,102,300	7.3%
Depreciation Expense	901,600	4.9%	921,100	6.1%
Inventory Write Down	128,800	0.7%	-	0.0%
Loss (Litigation)	1,398,400	7.6%	347,300	2.3%
Income Before Tax	1,122,400	6.1%	5,964,500	39.5%
Income Tax Expense	368,000	2.0%	1,887,500	12.5%
Net Income	754,400	4.1%	4,077,000	27.0%

Percentage is calculated by Individual item / Net Sales x 100%

Net Sales taken as base data