Fanning Company reported the following operating results for two consecutive years: Required Compute each income statement component for each of the two years as a percent of sales. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4). Sales Cost of goods sold Gross margin on sales Operating expenses Income before taxes Income taxes Net income FANNING COMPANY Vertical Analysis of Income Statements Percentage of Sales Year 4 Year 3 for Year 4 Percentage of Sales for Year 3 $ 1,003,000 % $ 1,080,500 % 551,650 601,200 451,350 479,300 129,500 151,800 321,850 327,500 79,600 82,600 $ 242,250 % 244,900 %
Fanning Company reported the following operating results for two consecutive years: Required Compute each income statement component for each of the two years as a percent of sales. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4). Sales Cost of goods sold Gross margin on sales Operating expenses Income before taxes Income taxes Net income FANNING COMPANY Vertical Analysis of Income Statements Percentage of Sales Year 4 Year 3 for Year 4 Percentage of Sales for Year 3 $ 1,003,000 % $ 1,080,500 % 551,650 601,200 451,350 479,300 129,500 151,800 321,850 327,500 79,600 82,600 $ 242,250 % 244,900 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Fanning Company reported the following operating results for two consecutive years:
Required
Compute each income statement component for each of the two years as a percent of sales.
Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e.,
.234 should be entered as 23.4).
Sales
Cost of goods sold
Gross margin on sales
Operating expenses
Income before taxes
Income taxes
Net income
FANNING COMPANY
Vertical Analysis of Income Statements
Percentage of Sales
Year 4
Year 3
for Year 4
Percentage of
Sales for Year 3
$
1,003,000
% $
1,080,500
%
551,650
601,200
451,350
479,300
129,500
151,800
321,850
327,500
79,600
82,600
$
242,250
%
244,900
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61643fcf-6c9c-4b30-9cd8-97d11e5075d4%2F5608aadb-7958-42a7-b373-ed68de64682d%2F3xwiff_processed.png&w=3840&q=75)
Transcribed Image Text:Fanning Company reported the following operating results for two consecutive years:
Required
Compute each income statement component for each of the two years as a percent of sales.
Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e.,
.234 should be entered as 23.4).
Sales
Cost of goods sold
Gross margin on sales
Operating expenses
Income before taxes
Income taxes
Net income
FANNING COMPANY
Vertical Analysis of Income Statements
Percentage of Sales
Year 4
Year 3
for Year 4
Percentage of
Sales for Year 3
$
1,003,000
% $
1,080,500
%
551,650
601,200
451,350
479,300
129,500
151,800
321,850
327,500
79,600
82,600
$
242,250
%
244,900
%
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