Income statement information for Lucy Company is provided below.Sales$175,000Cost of goods sold105,000Gross profit$ 70,000 Required:Prepare a vertical analysis of the income statement for Lucy Company.Lucy CompanyVertical Analysis of the Income Statement AmountPercentageSales$175,000fill in the blank 1%Cost of goods sold105,000fill in the blank 2%Gross profit$70,000fill in the blank 3%

Vertical analysis is generally done to express the relative sizes of the different accounts reported on the financial statements based on a particular account. For the income statement, the sales amount would be taken as the base figure. Thus, the vertical analysis of the income statement is prepared to show the relative percentage of each other accounts based on the net sales amount. Excel Calculation:

Answered: Income statement information for Lucy…

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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Income statement information for Lucy Company is provided below.

Sales	$175,000
Cost of goods sold	105,000
Gross profit	$ 70,000

Required:

Prepare a vertical analysis of the income statement for Lucy Company.

Lucy Company
Vertical Analysis of the Income Statement

	Amount	Percentage
Sales	$175,000	fill in the blank 1%
Cost of goods sold	105,000	fill in the blank 2%
Gross profit	$70,000	fill in the blank 3%

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