10 ) Vertical AnalysisMcKenzie Sales, Ltd.Comparative Income StatementThis Year Last YearSales$Cost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxes$7,360,000 $5,593,6004,760,000 3,511,0002,600,000 2,082,6001,384,000 1,081,500709,000 615,0002,093,000 1,696,500507,000 386,10096,00090,000411,000$ 296,100

Formula used: Each line item value % = [ Each line item value / Sales value ] x 100

Answered: McKenzie Sales, Ltd. Comparative Income…

McKenzie Sales, Ltd. Comparative Income Statement Sales Cost of goods sold Gross margin This Year Last Year $ 7,360,000 $5,593,600 4,760,000 3,511,000 2,600,000 2,082,600

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSA: A Using Common Size Statements The following income statement and vertical analysis data are...

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