Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Operating data for Ayayai Corp. are présented 2019 2010 Sales revenue Cost of go

ID: 2524383 • Letter: O

Question

Operating data for Ayayai Corp. are présented 2019 2010 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 476,690 107,310 58,400 28,470 59,130 $630,000 422,730 73,710 47,250 28,350 57,960 Prepare a schedule showing a vertical analysis for 2019 and 2018. (Round percentages to 1 deci AYAYAI CORP Condensed Income Statement 2018 2019 Amount Percent Amount Percent Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income $730,000 476,690 253,310 107,310 58,400 165,710 87,600 28,470 % $630,000 % 422,730 % 207,270 73,710 % 47,250 % 120,960 86,310 % 28,350 taxes Income tax expense

Explanation / Answer

AYAYAI Corp

Condensed Income Statement

Vertical Analysis Statement

2019

2018

Amount

Percent

Amount

Percent

Sales

730,000

100

630,000

100

Cost of goods sold

476,690

65.3

422,730

67.1

Gross Profit

253,310

34.7

207,270

32.9

Selling Expense

107,310

14.7

73,710

11.7

Administrative Expense

58,400

8

47,250

7.5

Total Operating Expenses

165,710

22.7

120,960

19.2

Income before Income Taxes

87,600

12

86,310

13.7

Income Tax Expense

28,470

3.9

28,350

4.5

Net Income

59,130

8.1

57,960

9.2

2019

2018

Amount

Percent

Amount

Percent

Sales

730,000

100

630,000

100

Cost of goods sold

476,690

65.3

422,730

67.1

Gross Profit

253,310

34.7

207,270

32.9

Selling Expense

107,310

14.7

73,710

11.7

Administrative Expense

58,400

8

47,250

7.5

Total Operating Expenses

165,710

22.7

120,960

19.2

Income before Income Taxes

87,600

12

86,310

13.7

Income Tax Expense

28,470

3.9

28,350

4.5

Net Income

59,130

8.1

57,960

9.2