Operating data for Joshua Corporation are presented below. 2020 2019Sales revenue $ 755,000 $ 604,000Cost of goods sold 464,325 386,560Selling expenses 118,535 75,500Administrative expenses 58,135 54,360Income tax expense 37,750 24,764Net income 76,255 62,816Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.) Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.)JOSHUA CORPORATIONCondensed Income StatementsFor the Years Ended December 3120202019AmountPercentAmountPercentSales revenue$ 755,000%$ 604,000Cost of goods sold464,325%386,560Gross profit290,675%217,440%Selling expenses118,535%75,500%Administrative expenses58,135%54,360Total operating expenses176,670%129,860%Income before income taxes114,005%87,580Income taxes expense37,750%24,764%Net income$ 76,255$ 62,816%

For vertical analysis, the items of income statement are compared to sales in percentage form.

Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue $ 755,000 $ 604,000 Cost of goods sold 464,325 386,560 Selling expenses 118,535 75,500 Administrative expenses 58,135 54,360 Income tax expense 37,750 24,764 Net income 76,255 62,816 Prepare a schedule showing a vertical analysis for 2020 and 2019.

Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue $ 755,000 $ 604,000 Cost of goods sold 464,325 386,560 Selling expenses 118,535 75,500 Administrative expenses 58,135 54,360 Income tax expense 37,750 24,764 Net income 76,255 62,816 Prepare a schedule showing a vertical analysis for 2020 and 2019.

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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	2020	2019
Sales revenue	$ 755,000	$ 604,000
Cost of goods sold	464,325	386,560
Selling expenses	118,535	75,500
Administrative expenses	58,135	54,360
Income tax expense	37,750	24,764
Net income	76,255	62,816

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Using Financial Statements for 2020, current ratio for the year 2020 is 1.62.
How can this be worked out ?