Prepare a vertical analysis schedule Here is the operating data for Yalis Cleaning, Inc.: 2021 2020 Service revenue $523,000 $476,000 Operating expenses 385,500 319,800 Income tax expense 34,375 39,050 Net income $103,125 $117,150
Prepare a vertical analysis schedule Here is the operating data for Yalis Cleaning, Inc.: 2021 2020 Service revenue $523,000 $476,000 Operating expenses 385,500 319,800 Income tax expense 34,375 39,050 Net income $103,125 $117,150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare a vertical analysis schedule
Here is the operating data for Yalis Cleaning, Inc.:
2021 2020
Service revenue $523,000 $476,000
Operating expenses 385,500 319,800
Income tax expense 34,375 39,050
Net income $103,125 $117,150
Purpose
The purpose of this problem is to demonstrate an understanding of preparing a vertical analysis schedule.
Instructions
After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue
as the base amount. Round percentages to two decimal places.
Guidance
For formatting guidance, see the vertical analysis examples that are provided in Chapter 13 of the textbook.
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