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Perform the vertical Financial Statement Analysis of Income Statement

Perform the vertical Financial Statement Analysis of Income Statement

FINANCIAL ACCOUNTING
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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  Perform the vertical Financial Statement Analysis of Income Statement  
Batangas Product Trader Income Statement For the Month November 30, 2021 Vertical Analysis 2021 Net Sales Sales 266,560.00 Less: Sales Returns and Allowances 11,700.00 Sales Discounts 3,600.00 Net Sales Cost of Sales 251,260.00 50,000.00 Merchandise Inventory, Nov.1, 2021 Add: Purchases 137,800.00 Transportation In 2,400.00 Less: Purchases Returns and Allowances 4,500.00 Purchases Discounts 600.00 102,400.00 82,700.00 Merchandise Inventory, Nov30, 2021 Net Cost of Purchases Gross Profit 168,560.00 Operating Expenses Selling Expenses Salaries Expense - Selling 24,000.00 Advertising Salaries Transportation Out 5,000.00 3,120.00 Depreciation Delivery Van 7,000.00 Impairment Loss Total Selling Expenses Administrative Expenses 1,410.00 40,530.00 Office Salaries 33,000.00 Rent Expense 15,000.00 Insurance Expense 2,000.00 Office Supplies Expense 1,000.00 Taxes and Licenses Expense 1,260.00 Light and Water Expense 20,500.00 Depreciation Expense-Office Equipment 1,025.00 Depreciation Expense-Furniture and Fixture 330.00 Total Administrative Expense 74,115.00 Total Operating Expenses 114,645.00 Operating Profit 53,915.00 Add: Other Income Rental Income 2,000.00 Interest Income 15.00 Less: Other Expenses Interest Expense 20.00 Profit 55,910.00
Transcribed Image Text:Batangas Product Trader Income Statement For the Month November 30, 2021 Vertical Analysis 2021 Net Sales Sales 266,560.00 Less: Sales Returns and Allowances 11,700.00 Sales Discounts 3,600.00 Net Sales Cost of Sales 251,260.00 50,000.00 Merchandise Inventory, Nov.1, 2021 Add: Purchases 137,800.00 Transportation In 2,400.00 Less: Purchases Returns and Allowances 4,500.00 Purchases Discounts 600.00 102,400.00 82,700.00 Merchandise Inventory, Nov30, 2021 Net Cost of Purchases Gross Profit 168,560.00 Operating Expenses Selling Expenses Salaries Expense - Selling 24,000.00 Advertising Salaries Transportation Out 5,000.00 3,120.00 Depreciation Delivery Van 7,000.00 Impairment Loss Total Selling Expenses Administrative Expenses 1,410.00 40,530.00 Office Salaries 33,000.00 Rent Expense 15,000.00 Insurance Expense 2,000.00 Office Supplies Expense 1,000.00 Taxes and Licenses Expense 1,260.00 Light and Water Expense 20,500.00 Depreciation Expense-Office Equipment 1,025.00 Depreciation Expense-Furniture and Fixture 330.00 Total Administrative Expense 74,115.00 Total Operating Expenses 114,645.00 Operating Profit 53,915.00 Add: Other Income Rental Income 2,000.00 Interest Income 15.00 Less: Other Expenses Interest Expense 20.00 Profit 55,910.00
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