The income statements for Federer Sports Apparel for 2019 and 2018 are presented

Question

The income statements for Federer Sports Apparel for 2019 and 2018 are presented below. Required: Prepare a vertical analysis of the data for 2019 and 2018. (Round your answers to 1 decimal place.) Amount Amount 100.01 15,500,000 70.27,000,000 29.88,500,000 8.5 1,200,000 5.3 1,000,000 0 8.0 300,000 6.9 6,000,000 2,000,000 100.0 45.2 54.8 7.7 6.5 0.0 Net sales 18,800,000 13,200,000 5,600,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write- down Loss (litigation) 1 1,600,000 1,000,000 200,000 1,500,000 Income before1,300,000 tax Income tax expense Net income 38.7 450,000 $ 850,000 4,000,000

Explanation / Answer

Federer sports apparel Amount % Amount % Net sales 18800000 100 15500000 100 Cost of goods sold 13200000 70.2% 7000000 45.2% Gross profit 5600000 29.8% 8500000 54.8% Operating expenses 1600000 8.5% 1200000 7.7% Depriciation Expense 1000000 5.3% 1000000 6.5% Inventory Write down 200000 1.1% 0 0.0% Loss(litigation) 1500000 8.0% 300000 1.9% Income before tax 1300000 6.9% 6000000 38.7% Income tax expense 450000 2.4% 2000000 12.9% Net Income 850000 4.5% 4000000 25.8% Example 13200000/18800000 70.2% 5600000/18800000 29.8%

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