Operating data for Navarro Corporation are presented below. 2017 2016 Prepare a
ID: 2498996 • Letter: O
Question
Operating data for Navarro Corporation are presented below.
2017
2016
Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round answers to 1 decimal place, e.g. 48.5%.)
NAVARRO CORPORATION
Condensed Income Statements
For the Years Ended December 31
2017
2016
Amount
Percent
Amount
Percent
Net sales
$ 746,000
$ 605,000
Cost of goods sold
468,500
387,000
Gross profit
277,500
218,000
Selling expenses
116,000
67,500
Administrative expenses
61,000
55,500
Total operating expenses
177,000
123,000
Income before income taxes
100,500
95,000
Income taxes expense
30,000
29,000
Net income
$ 70,500
$ 66,000
2017
2016
Net sales $ 746,000 $ 605,000 Cost of goods sold 468,500 387,000 Selling expenses 116,000 67,500 Administrative expenses 61,000 55,500 Income tax expense 30,000 29,000 Net income 70,500 66,000Explanation / Answer
NAVARRO CORPORATION
Condensed income statement
For the year Ended December 31st of
2017 2016
Amount ($) percentage Amount($) Percentage
Net sales 746000 100% 605000 100%
Cost of goods sold 468500 62.8% 387000 64%
Gross profit 277500 37.2% 218000 36%
Selling expenses 116000 15.5% 67500 11.2%
Administrative Expenses 61000 8.2% 55500 9.1%
Total Operating Expenses 177000 23.7% 123000 20.3%
Income from income tax 100500 13.5% 95000 15.7%
Income tax expenses 30000 4% 29000 4.8%
Net income 70500 9.5% 66000 10.9%
Note:- The percentage is calculated by taking "Sale" as base :
percentage = "Items" cost / Sales Amount * 100
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