BC 266: EXCEL PROBLEM PR 17-2A:VERTICAL ANALYSIS   For 2016, Indigo Corp. initiated a sales promotion campaign that included an expenditure of $39,000 for advertising. At year end the company President is presented with the following condensed Comparative Income Statement:     20162015   Sales revenue $820,000 $600,000 COGS [Cost of Goods Sold]311,600240,000 Gross profit508,400360,000 Selling expenses 164,000 108,000 Administrative expenses 57,40054,000 Total operating expenses 221,400162,000 Income from operations [NOI] 287,000 198,000 Other income 65,600 48,000 Income before income tax 352,600 246,000 Income tax expense246,000180,000 Net Income [NI] 106,600 66,000 Prepare a Comparative Income Statement using Vertical Analysis for the two-year period. Present each item as a % of sales for the given year and round your values to one decimal place.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
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BC 266: EXCEL PROBLEM PR 17-2A:VERTICAL ANALYSIS

 

For 2016, Indigo Corp. initiated a sales promotion campaign that included an expenditure of $39,000 for advertising. At year end the company President is presented with the following condensed Comparative Income Statement:

 

 

20162015

 

Sales revenue $820,000 $600,000

COGS [Cost of Goods Sold]311,600240,000

Gross profit508,400360,000

Selling expenses 164,000 108,000

Administrative expenses 57,40054,000

Total operating expenses 221,400162,000

Income from operations [NOI] 287,000 198,000

Other income 65,600 48,000

Income before income tax 352,600 246,000

Income tax expense246,000180,000

Net Income [NI] 106,600 66,000

Prepare a Comparative Income Statement using Vertical Analysis for the two-year period. Present each item as a % of sales for the given year and round your values to one decimal place.

 

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