Operating data for Robinson Corporation are presented here. 2010 2009 Sales $800
ID: 2349310 • Letter: O
Question
Operating data for Robinson Corporation are presented here.2010 2009
Sales $800,000 $600,000
Cost of goods sold 520,000 408,000
Selling expenses 120,000 72,000
Administrative expenses 72,000 48,000
Income tax expense 32,000 21,600
Net income 56,000 50,400
Complete the schedule showing a vertical analysis for 2010 and 2009. (Round all percentages to 1 decimal place, e.g. 12.5.)
ROBINSON CORPORATION
Condensed Income Statement
For the Years Ended December 31
2010
2009
Amount
Percent
Amount
Percent
Sales $800,000 % $600,000 %
Cost of goods sold 520,000
%
408,000
%
Gross profit 280,000
%
192,000
%
Selling expenses 120,000 % 72,000 %
Administrative expenses 72,000
%
48,000
%
Total operating expenses 192,000
%
120,000
%
Income before income taxes 88,000 % 72,000 %
Income tax expense 32,000
%
21,600
%
Net income $56,000
%
$50,400
%
Explanation / Answer
2010
2009
Amount
Percent
Amount
Percent
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total operating expenses
Income before income taxes
Income tax expense
Net income
$800,000
520,000
280,000
120,000
72,000
192,000
88,000
32,000
$ 56,000
100.0%
65.0%
35.0%
15.0%
9.0%
24.0%
11.0%
4.0%
7.0%
$600,000
408,000
192,000
72,000
48,000
120,000
72,000
21,600
$ 50,400
100.0%
68.0%
32.0%
12.0%
8.0%
20.0%
12.0%
3.6%
8.4%
2010
2009
Amount
Percent
Amount
Percent
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total operating expenses
Income before income taxes
Income tax expense
Net income
$800,000
520,000
280,000
120,000
72,000
192,000
88,000
32,000
$ 56,000
100.0%
65.0%
35.0%
15.0%
9.0%
24.0%
11.0%
4.0%
7.0%
$600,000
408,000
192,000
72,000
48,000
120,000
72,000
21,600
$ 50,400
100.0%
68.0%
32.0%
12.0%
8.0%
20.0%
12.0%
3.6%
8.4%
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