Return to Blackboard Kimmel Financial Accounting 8e Help I m

Return to Blackboard Kimmel, Financial Accounting, 8e Help I me: 02:36 PM/Remaining: 58 min, ESOURCES Question 1 Here are the comparative income statements of Sheffield Corp.. SHEFFIELD CORP ts by Study Income Statement For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross Profit Operating expenses Net income $632,300 456,600 175,700 74,100 101,600 $544,800 415,500 129,300 44,500 $ 84,800 al analysis of the income statement data for Sheffield Corp, using 2016 as a base. ( amount and p 20% or (55,000), (20% ). Round percentages to 1 decimal place, eg. 12.1%.) SHEFFIELD COR Income Statement Net sales Cost of goods sold 456,600 Gross Profit Operating expenses 74,100 Net income $101,600 $632,300 $544,800 415,500 175,700 129,300 44,500 $84,800s Prepare a vertical analysis of the income statement data for Sheffield Corp. for both years. (Round percentages to i declm SHEFFIELD CORP esc 2 3 4 5 6

Solution

a Comparative Income Statement For the years ended December 31 2017 2016 Amount Percentage Net sales 632300 544800 87500 16.1% Cost of goods sold 456600 415500 41100 9.9% Gross Profit 175700 129300 46400 35.9% Operating expenses 74100 44500 29600 66.5% Net income 101600 84800 16800 19.8% b Condensed Income Statement For the years ended December 31 2017 Percentage 2016 Percentage Net sales 632300 100.0% 544800 100.0% Cost of goods sold 456600 72.2% 415500 76.3% Gross Profit 175700 27.8% 129300 23.7% Operating expenses 74100 11.7% 44500 8.2% Net income 101600 16.1% 84800 15.6%