Operating data for Joshua Corporation are presented below 20

Operating data for Joshua Corporation are presented below. 2017 2016 s800,000 $600,000 408,000 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 520,000 20,000 72,000 60,000 30,000 70,000 48,000 24,000 48,000 Instructions Prepare a schedule showing a vertical analysis for 2017 and 2016. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a\"?\"

Solution

Condensed income statement :

	2017	2016
Sales revenue	800000	100%	600000	100%
Cost of goods sold	520000	65%	408000	68%
Gross profit	280000	35%	192000	32%
Selling expenses	120000	15%	72000	12%
Administrative expenses	60000	7.5%	48000	8%
Total operating expenses	180000	22.5%	120000	20%
Income before income tax	100000	12.5%	72000	12%
Income tax expenses	30000	3.75%	24000	4%
Net income	70000	8.75%	48000	8%