Problem - Vertical Analysis of Income Statement

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Problem - Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

 

Current Year

Previous Year

Sales

$4,000,000

$3,600,000

Cost of goods sold

2,280,000

1,872,000

Selling expenses

600,000

648,000

Administrative expenses

520,000

360,000

Income tax expense

240,000

216,000

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Reference no: EM132479946

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