Rossana Gonzaga ABM12

Vertical Analysis

Shoppersville Trading
Income Statements
For the year ended 2016
  2016  
  Amount %
Net Sales 1,080,000 100%
Less: Cost of Goods Sold 636,000 59%
Gross Profit 444,000 41%
Less: Operating Expenses 291,600 27%
Operating Income 152,400 14%
Less: Interest Expense 28,800 3%
Income Before Income Tax 123,600 11%
Less: Income Tax 43,260 4%
Net Income 80,340 7%

Computation
Net Sales - 1,080,000 / 1,080,000 x 100 = 100%
Cost of Goods Sold – 636,000 / 1,080,000 x 100 = 59%
Gross Profit – 444,000 / 1,080,000 x 100 = 41%
Operating Expense – 291,600 / 1,080,000 x 100 = 27%
Interest Expense – 28,800 / 1,080,000 x 100 = 14%
Income Before Income Tax – 123,600 / 1,080,000 x 100 = 11%
Income Tax – 43,260 / 1,080,000 x 100 = 4%
Net Incomezy