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Question - The following data relate to bravo company for the year 2018:
Sales 800,000
Cost of Goods Sold 480,000
Gross profit 320,000
Operating expenses:
Selling 40,000
Administrative 80,000
Profit before income tax 200,000
Income tax expense 60,000
Profit 140,000
Required:
A. Prepare a vertical analysis of the income statement.
B. What additional information would you need to determine if the percentages are good or bad?
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