YEAR 1 YEAR 2 Net Sales 9,937,650 12,937,000 Less: Cost of Goods Sold 3,387,650 4,925,000 Gross profit 6,550,000 8,012,000 Less: Expenses Salaries Expense 3,410,000 3,938,500 Rent Expense 960,000 1,050,000 Insurance Expence 250,000 310,750 Utilities Expense Miscellaneous Expense 160,000 175,500 80,000 97,800 Advertising Expense 140,000 155,000 198,000 Supplies Expense Depreciation Expense- Office Equipment 180,000 160,000 185,000 Interest Expense 60,000 68,500 Net Income 1,150,000 1,832,950

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
With the given statement of comprehensive income below, conduct a vertical analysis.
YEAR 1
YEAR 2
Net Sales
9,937,650
12,937,000
3,387,650
6,550,000
Less: Cost of Goods Sold
4,925,000
Gross profit
8,012,000
Less: Expenses
Salaries Expense
3,410,000
3,938,500
960,000
Rent Expense
Insurance Expence
1,050,000
250,000
310,750
Utilities Expense
160,000
175,500
Miscellaneous Expense
80,000
97,800
Advertising Expense
140,000
155,000
Supplies Expense
180,000
198,000
Depreciation Expense- Office Equipment
160,000
185,000
Interest Expense
60,000
68,500
Net Income
1,150,000
1,832,950
Transcribed Image Text:YEAR 1 YEAR 2 Net Sales 9,937,650 12,937,000 3,387,650 6,550,000 Less: Cost of Goods Sold 4,925,000 Gross profit 8,012,000 Less: Expenses Salaries Expense 3,410,000 3,938,500 960,000 Rent Expense Insurance Expence 1,050,000 250,000 310,750 Utilities Expense 160,000 175,500 Miscellaneous Expense 80,000 97,800 Advertising Expense 140,000 155,000 Supplies Expense 180,000 198,000 Depreciation Expense- Office Equipment 160,000 185,000 Interest Expense 60,000 68,500 Net Income 1,150,000 1,832,950
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