Chapter 15.II, Problem 5TIE

To determine

To calculate: The vertical analysis of an income statement for Royal Equipment Supply, Inc. for the year December $31,2016$ if gross sales are $\$458,400$, sales returns and allowances are $\$13,200$, sales discount is $\$1,244$, merchandise inventory for $\text{Jan},1,2016$ is $\$198,700$, merchandise inventory for $\text{Dec}.31,2016$ is $\$76,400$, net purchases are $\$86,760$, freight in is $\$875$, salaries are $\$124,200$, rent is $\$21,000$, utilities are $\$1,780$, advertising is $\$5,400$, insurance is $\$2,340$, administrative expense is $\$14,500$, miscellaneous expenses are $\$6,000$ and income tax is $\$17,335$.