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Question - Operating data for Navarro Corporation are presented below.
2017
2016
Net sales
$754,000
$601,500
Cost of goods sold
469,500
389,500
Selling expenses
124,500
67,500
Administrative expenses
65,000
52,000
Income tax expense
30,000
25,500
Net income
67,000
Required - Prepare a schedule showing a vertical analysis for 2017 and 2016.
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Using the same concept selected above, discuss how a business manager may benefit from an understanding of this statement.
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