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*Please show formula MARIGOLD CORP. Condensed Income Statements For the Month En

ID: 2334291 • Letter: #

Question

*Please show formula

MARIGOLD CORP.
Condensed Income Statements
  For the Month Ended December 31December 31For the Years Ended December 31

2017

2016

$

Percent

$

Percent

Net sales

$ 613,800

%

$ 556,000

%

Cost of goods sold

457,400

%

437,400

%

Gross Profit

156,400

%

118,600

%

Operating expenses

73,400

%

41,900

%

Net income

$  83,000

%

$  76,700

%

MARIGOLD CORP.
Condensed Income Statements
  For the Month Ended December 31December 31For the Years Ended December 31

2017

2016

$

Percent

$

Percent

Net sales

$ 613,800

%

$ 556,000

%

Cost of goods sold

457,400

%

437,400

%

Gross Profit

156,400

%

118,600

%

Operating expenses

73,400

%

41,900

%

Net income

$  83,000

%

$  76,700

%

Explanation / Answer

vertical analysis for the data will be prepared by taking net sales as the base amount:

formula = item analysed / net sales * 100

(item analysed are net sales, cost of goods sold, gross profit, operating expenses, net income)

2017 2016 $ % $ % net sales 613,800 (613,800/613,800*100) =>100% 556,000 (556,000/556,000*100)=>100% cost of goods sold 457,400 (457,400/613,800*100)=>74.52% 437,400 (437,400/556,000*100)=>78.67% gross profit 156,400 (156,400/613,800*100)=>25.48% 118,600 (118,600/556,000*100)=>21.33% operating expenses 73,400 (73,400/613,800*100)=>11.96% 41,900 (41,900/556,000)*100=>7.54% net income 83,000 (83,000//613,800*100)=>13.52% 76,700 (76,700/556,000*100)=>13.79%