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

2017 2016 amount percent amount percent Sales revenue 800,000 100.00% 600,000 100.00% cost of goods sold 520,000 65.00% 408,000 68.00% Gross profit 280,000 35.00% 192,000 32.00% Selling expenses 120,000 15.00% 72,000 12.00% Administrative expenses 60,000 7.50% 48,000 8.00% total operating expense 180,000 22.50% 120,000 20.00% income before income taxes 100,000 12.50% 72,000 12.00% income tax expense 30,000 3.75% 24,000 4.00% Net income 70,000 8.75% 48,000 8.00% vertical analysis = each item head amount/sales revenue