Question

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 Income Statement
For the Years Ended December 31, 20Y8 and 20Y7
	20Y8 Amount	20Y8 Percent	20Y7 Amount	20Y7 Percent
Sales	$	%	$	%
Cost of goods sold		%		%
Gross profit	$	%	$	%
Selling expenses	$	%	$	%
Administrative expenses		%		%
Total operating expenses	$	%	$	%
Income from operations	$	%	$	%
Income tax expense		%		%
Net income	$	%	$	%

Answer 1