please show example through Excel Vertical Analysis of Incom

please show example through Excel

Vertical Analysis of Income Statement

For 2014, Othere Technology Company initiated a sales promotion campaign that included the expenditure of an additional $15,000 for advertising. At the end of the year, George Wallace, the president, is presented with the following condensed comparative income statement:

Required:

1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.

Othere Technology Company

Comparative Income Statement

For the Years Ended December 31, 2014 and 2013

2014 Amount

2014 Percent

2013 Amount

2013 Percent

Sales

$ 529,240

  %

$ 455,510

  %

Sales returns and allowances

5,240

  %

4,510

  %

Net sales

$ 524,000

  %

$ 451,000

  %

Cost of goods sold

246,280

  %

230,010

  %

Gross profit

$ 277,720

  %

$ 220,990

  %

Selling expenses

$ 104,800

  %

$ 85,690

  %

Administrative expenses

52,400

  %

54,120

  %

Total operating expenses

$ 167,680

  %

$ 139,810

  %

Income from operations

$ 110,040

  %

$ 81,180

  %

Other income

26,200

  %

13,530

  %

Income before income tax

$ 136,240

  %

$ 94,710

  %

Income tax expense

52,400

  %

36,080

  %

Net income

$ 83,840

  %

$ 58,630

  %

Othere Technology Company Comparative Income Statement For the Years Ended December 31, 2014 and 2013
	2014		2013
Sales	$529,240		$455,510
Sales returns and allowances	5,240		4,510
Net sales	$524,000		$451,000
Cost of goods sold	246,280		230,010
Gross profit	$277,720		$220,990
Selling expenses	$104,800		$85,690
Administrative expenses	52,400		54,120
Total operating expenses	$167,680		$139,810
Income from operations	$110,040		$81,180
Other income	26,200		13,530
Income before income tax	$136,240		$94,710
Income tax expense	52,400		36,080
Net income	$83,840		$58,630

Solution

Comparative income statement for the two-year period

percentage amount = amount/net sales*100

	2014	2014 Percent	2013	2013 Percent
Sales	529240	101%	455510	1%
Sales returns and allowances	5240	1%	4510	1%
Net sales	524000	100%	451000	100%
Cost of goods sold	246280	47%	230010	5%
Gross profit	277720	53%	220990	49%
Selling expenses	104800	20%	85690	19%
Administrative expenses	52400	10%	54120	12%
Total operating expenses	167680	32%	139810	31%
Income from operations	110040	21%	81180	18%
Other income	26200	5%	13530	3%
Income before income tax	136240	26%	94710	21%
Income tax expense	52400	10%	36080	8%
Net income	83840	16%	58630	13%