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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
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