Please calculate the verticle and horizontal analysis of the Income statement.Consolidated Statements of Earnings (USD $)12 Months Ended In Millions, except Per Share data, unless otherwise specified12/31/2020Vertical Analysis12/31/2019Vertical AnalysisHorizontal AnalysisIncome Statement [Abstract] NET SALES$83,176 $78,812 Cost of Sales54,222 51,422 GROSS PROFIT28,954 27,390 Operating Expenses: Selling, General and Administrative16,834 16,597 Depreciation and Amortization1,651 1,627 Total Operating Expenses18,485 18,224 OPERATING INCOME10,469 9,166 Interest and Other (Income) Expense: Interest and Investment Income-337 -12 Interest Expense830 711 Other0 0 Interest and Other, net493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES9,976 8,467 Provision for Income Taxes3,631 3,082 NET EARNINGS$6,345 $5,385 Weighted Average Common Shares1,338 1,425 BASIC EARNINGS PER SHARE$4.74 $3.78

Common Size Statement is also known as the vertical analysis method. The Company uses this method to…

Answered: Please calculate the verticle and…

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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Please calculate the verticle and horizontal analysis of the Income statement.

Consolidated Statements of Earnings (USD $)	12 Months Ended
In Millions, except Per Share data, unless otherwise specified	12/31/2020	Vertical Analysis	12/31/2019	Vertical Analysis	Horizontal Analysis
Income Statement [Abstract]
NET SALES	$83,176		$78,812
Cost of Sales	54,222		51,422
GROSS PROFIT	28,954		27,390
Operating Expenses:
Selling, General and Administrative	16,834		16,597
Depreciation and Amortization	1,651		1,627
Total Operating Expenses	18,485		18,224
OPERATING INCOME	10,469		9,166
Interest and Other (Income) Expense:
Interest and Investment Income	-337		-12
Interest Expense	830		711
Other	0		0
Interest and Other, net	493		699
EARNINGS BEFORE PROVISION FOR INCOME TAXES	9,976		8,467
Provision for Income Taxes	3,631		3,082
NET EARNINGS	$6,345		$5,385
Weighted Average Common Shares	1,338		1,425
BASIC EARNINGS PER SHARE	$4.74		$3.78

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