Kimmel Financial Accounting 8e Help l Exercise 134 Operating

Kimmel, Financial Accounting, 8e Help l Exercise 13-4 Operating data for Bramble Corp. are presented below. 2017 2016 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income $842,100 521,600 122,100 78,600 35,600 84,200 $637,500 409,900 77,500 54,800 29,500 65,800 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.1 BRAMBLE COR 2017 2016 Percent $842,100 521,600 320,500 122,100 78,600 Total operating expenses 200,700 Income before income taxes 119,800 35,600 $84,200 AmountPercentAmount % $637,500 % 409,900 % 227,600 % 77,500 |% 54,800 % 132,300 95,300 1% 29,500 % -$65,800 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Income tax expense Net income LINK TO TEXT VIDEO APPLIED SKILLS VEDEO SEMILAR EXERCISE Q Search or enter website name

Solution

2017 2016 Amount % Amount % Sales 842100 100.0% 637500 100.0% Cost of goods sold 521600 61.9% 409900 64.3% Gross profit 320500 38.1% 227600 35.7% Selling expenses 122100 14.5% 77500 12.2% Administrative expenses 78600 9.3% 54800 8.6% Total operating expenses 200700 23.8% 132300 20.8% Income before income taxes 119800 14.2% 95300 14.9% Income tax expense 35600 4.2% 29500 4.6% Net income 84200 10.0% 65800 10.3%