Answered: Assume that sales revenue in 2022…

Assume that sales revenue in 2022 changed to $755,00 and cost of goods changed to $512,000. Income tax rate is 30%. Show the impact of these changes on the vertical analysis of the income statement.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 23PC

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Assume that sales revenue in 2022 changed to $755,00 and cost of goods changed to $512,000.
Income tax rate is 30%. Show the impact of these changes on the vertical analysis of the income
statement.

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