Operating data for Taylor Corporation are presented below. Using the Excel spreadsheet provided, prepare a schedule showing a vertical analysis for 2020 and 2019. 2020 2019 Sales revenue $800,000 $600,000 Cost of goods sold 520,000 408,000 Selling expenses 120,000 72,000 Administrative expenses 60,000 48,000 Income tax expense 30,000 24,000 Net income 70,000 48,000 (CGS percent. = CGS ÷ Sales rev.)
Operating data for Taylor Corporation are presented below. Using the Excel spreadsheet provided, prepare a schedule showing a vertical analysis for 2020 and 2019. 2020 2019 Sales revenue $800,000 $600,000 Cost of goods sold 520,000 408,000 Selling expenses 120,000 72,000 Administrative expenses 60,000 48,000 Income tax expense 30,000 24,000 Net income 70,000 48,000 (CGS percent. = CGS ÷ Sales rev.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Operating data for Taylor Corporation are presented below. Using the Excel spreadsheet provided, prepare a schedule showing a vertical analysis for 2020 and 2019.
|
2020 |
2019 |
|
|
Sales revenue |
$800,000 |
$600,000 |
|
Cost of goods sold |
520,000 |
408,000 |
|
Selling expenses |
120,000 |
72,000 |
|
Administrative expenses |
60,000 |
48,000 |
|
Income tax expense |
30,000 |
24,000 |
|
Net income |
70,000 |
48,000 |
(CGS percent. = CGS ÷ Sales rev.)
Expert Solution
Step 1
Vertical analysis of Income Statement shows all elements of Income Statement as a percentage of sales revenue.
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