Explanation Given Information: The incomplete balance sheet is given as follows, Income statement Revenue 2016($) Percent Total sales 148,645 Sales return and allowance 8,892 Net sales 139,753 Cost of goods sold Beginning inventory on January 1 12,100 Purchases 47,800 Ending inventory, December 31 11,950 Cost of goods sold 47,950 Gross profit from sales 91,803 Operating expenses Salary 25,500 Rent 4,500 Utilities 1,445 Insurance 2,100 Fees 225 Depreciation 1,240 Miscellaneous 750 Total operating expenses 35,760 Net income 56,043 Calculation: Consider the provided income statement, In order to complete the vertical analysis of the income statement, Find the percent of each item to net sales, Total sales: Percent to net sales = $ 148645 $ 139753 × 100 = 106 % Sales return and allowance: Percent to net sales = $ 8892 $ 139753 × 100 = 6 % Net sales: Percent to net sales = $ 139753 $ 139753 × 100 = 100 % Beginning inventory: Percent to net sales = $ 12100 $ 139753 × 100 = 9 % Purchases: Percent to net sales = $ 47800 $ 139753 × 100 = 21 % Ending inventory: Percent to net sales = $ 11950 $ 139753 × 100 = 5 % Cost of the goods sold: Percent to net sales = $ 47950 $ 139753 × 100 = 34 % Gross profit from sales: Percent to net sales = $ 91803 $ 139753 × 100 = 66 % Salary:

11th Edition

ISBN: 9780134496436

Author: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

Publisher: PEARSON

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Chapter 21, Problem 6ES

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To calculate: The vertical of income statement of S Gifts.

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Business Math (11th Edition)

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The vertical of income statement of S Gifts.

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