From the French Instrument Corporation second-quarter report ended 2018, do a vertical analysis for the second quarter of 2018. (Input all answers as positive values except other (income) which should be indicated by a minus sign. Round your answers to the nearest hundredth percent.) FRENCH INSTRUMENT CORPORATION AND SUBSIDIARIESConsolidated Statements of Operation(Unaudited) (In thousands of dollars, except share data) Second Quarter 20182017Percent of netNet sales$6,644$6,888 Cost of sales4,0804,453 Gross margin2,5642,435 Expenses: Selling, general and administrative1,8361,774 Product development166156 Interest expense89114 Other (income), net(181)(108) Total expenses1,9101,936 Income before income taxes654499 Provision for income taxes256200 Net income$398$299 Net income per common share*$0.05$0.03 Weighted average number of common shares and equivalents6,673,6736,624,184

Introduction:- As per the vertical analysis we show every item of profit loss as a percentage of sales. Formula =Every individual item value / sales x 100 So, In this case we have to analyze second quarter of 2018, for which every item is shown as percentage of $6,644(net sales).Explanations:- FRENCH INSTRUMENT CORPORATION AND SUBSIDIARIES Consolidated Statements of Operation (Unaudited) (In thousands of dollars, except share data) Second Quarter 2018 2017 Percent of net Net sales $6,644 $6,888 100% Cost of sales 4,080 4,453 61.40% Gross margin 2,564 2,435 38.60% Expenses: Selling, general and administrative 1,836 1,774 27.63% Product development 166 156 2.49% Interest expense 89 114 1.34% Other (income), net -181 -108 -2.72% Total expenses 1,910 1,936 28.74% Income before income taxes 654 499 9.84% Provision for income taxes 256 200 3.85% Net income $398 $299 5.99% Net income per common share* $0.05 $0.03 Weighted average number of common shares and equivalents 66,73,673 66,24,184 I hope helpful to you.. If you are satisfied.. Support me.. Thank you..

Answered: From the French Instrument Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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From the French Instrument Corporation second-quarter report ended 2018, do a vertical analysis for the second quarter of 2018. (Input all answers as positive values except other (income) which should be indicated by a minus sign. Round your answers to the nearest hundredth percent.)

FRENCH INSTRUMENT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operation
(Unaudited) (In thousands of dollars, except share data)
	Second Quarter
	2018	2017	Percent of net
Net sales	$6,644	$6,888
Cost of sales	4,080	4,453
Gross margin	2,564	2,435
Expenses:
Selling, general and administrative	1,836	1,774
Product development	166	156
Interest expense	89	114
Other (income), net	(181)	(108)
Total expenses	1,910	1,936
Income before income taxes	654	499
Provision for income taxes	256	200
Net income	$398	$299
Net income per common share*	$0.05	$0.03
Weighted average number of common shares and equivalents	6,673,673	6,624,184

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