Question

Vertical Analysis Income statement information for Einsworth Corporation follows: Sales$564,000 Cost of goods sold135,360 Gross profit428,640...

Vertical Analysis

Income statement information for Einsworth Corporation follows:

Sales$564,000

Cost of goods sold135,360

Gross profit428,640

Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number.

Einsworth Corporation

Vertical Analysis of the Income Statement

AmountPercentage

Sales$564,000%

Cost of goods sold135,360

Gross profit$428,640%

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :

Vertical analysis of Income statement,  is a analysis of Income statement in which each line item is shown as a percentage of sales. Sales percentage is always 100%.

Vertical Analysis of the Income Statement :

Particulars Amount (in $) Percentage
Sales 564,000 100%
Less : Cost of goods sold 135,360 24%
Gross profit 428,640 76%

% Cost of goods sold = $135,360 / $564,000 x 100 = 24%

% Gross profit = $428,640 / $564,000 x 100 = 76%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Horizontal Analysis The comparative temporary investments and inventory balances of a company follow. Current Year Previous...
Horizontal Analysis The comparative temporary investments and inventory balances of a company follow. Current Year Previous Year Accounts payable $57,630 $51,000 Long-term debt   36,992   54,400 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Amount of Change Increase/Decrease Percentage Accounts payable $ % Long-term debt $ % Vertical Analysis Income statement information for Einsworth Corporation follows: Sales $556,000 Cost of goods sold 155,680 Gross...
Mussa Corporation reports the following​ data: Net sales $270,000 Cost of goods sold 180,000 Gross profit...
Mussa Corporation reports the following​ data: Net sales $270,000 Cost of goods sold 180,000 Gross profit $90,000 In vertical​ analysis, the cost of goods sold percentage is closest​ to: (Round your final answer to the nearest whole​ percentage)
Profitability Analysis Kolby Enterprises reports the following information on its income statement: Net sales$220,000Administrative expenses$10,000 Cost...
Profitability Analysis Kolby Enterprises reports the following information on its income statement: Net sales$220,000Administrative expenses$10,000 Cost of goods sold140,000Other income15,000 Selling expenses40,000Other expense5,000 Required Calculate Kolby’s gross profit percentage and return on sales ratio. Kolby is planning to add a new product and expects net sales to be $30,000 and cost of goods to be $25,000. No other income or expenses are expected to change. How will this affect Kolby’s gross profit percentage and return on sales ratio? (Round all...
Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows:...
Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows: 20Y8 20Y7 Sales $599,000 $539,000 Cost of goods sold 353,410 291,060 Selling expenses 95,840 97,020 Administrative expenses 107,820 118,580 Income tax expense 23,960 10,780 a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as a positive number. Rogan Technologies Co. Comparative...
The Income Statement for MDB Inc. follows along with additional information: MDB Corporation Income Statement For...
The Income Statement for MDB Inc. follows along with additional information: MDB Corporation Income Statement For the Year Ended December 31, 2019 Sales Revenue                               500000       Cost of Goods Sold                               300000 Gross Profit                                   200000 Operating Expenses                               140000 Net Income                                   60000 Additional Information: Increase...
Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included...
Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $23,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $812,000 $698,000 Cost of goods sold 365,400 349,000 Gross profit $446,600 $349,000 Selling expenses $162,400 $132,620 Administrative expenses 89,320 90,740...
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...
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 $583,000 $531,000 Cost of goods sold 332,310 276,120 Selling expenses 99,110 100,890 Administrative expenses 110,770 90,270 Income tax expense 17,490 26,550 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. Innovation...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows:     Current Year     Previous Year Sales $550,000 $440,000 Cost of goods sold 467,400 380,000 Gross profit $82,600 $60,000 Selling expenses $24,150 $21,000 Administrative expenses 20,910 17,000 Total operating expenses $45,060 $38,000 Income before income tax $37,540 $22,000 Income tax expenses 15,000 8,800 Net income $22,540 $13,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease)...
Exercise 18-4 The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATION Comparative...
Exercise 18-4 The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2017 2016 Net sales $745,800 $678,000 Cost of goods sold 545,790 475,600 Gross profit 200,010 202,400 Operating expenses 141,250 135,600 Net income $ 58,760 $ 66,800 (a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding...
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...
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 $435,000 $396,000 Cost of goods sold 269,700 221,760 Selling expenses 65,250 71,280 Administrative expenses 73,950 59,400 Income tax expense 8,700 15,840 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. (For...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT