The income statement for Sutherland Inc., appears below. Net sales Cost of goods sold Gross profit Operating Expenses Operating income Other income (expense) Income before tax Income tax expense Net income SUTHERLAND INC. Income Statements For the years ended December 31 2021 $3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000 2020 $2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000 Increase (Decrease) Amount % Prepare a vertical analysis as well, using net sales as the base. Give your observations about the changes that have occurred for Sutherland, Inc. between 2020 and 2021.

The income statement for Sutherland Inc., appears below. Net sales Cost of goods sold Gross profit Operating Expenses Operating income Other income (expense) Income before tax Income tax expense Net income SUTHERLAND INC. Income Statements For the years ended December 31 2021 $3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000 2020 $2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000 Increase (Decrease) Amount % Prepare a vertical analysis as well, using net sales as the base. Give your observations about the changes that have occurred for Sutherland, Inc. between 2020 and 2021.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...

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