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Operating data for Bramble Corp. are presented below. 2017 2016 Prepare a schedu

ID: 2532054 • Letter: O

Question

Operating data for Bramble Corp. are presented below.

2017

2016


Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.1%.)

2017

2016

Amount

Percent

Amount

Percent

Sales

$827,200

%

$626,800

%

Cost of goods sold

529,100

%

412,600

%

Gross profit

298,100

%

214,200

%

Selling expenses

121,800

%

73,700

%

Administrative expenses

73,200

%

50,000

%

Total operating expenses

195,000

%

123,700

%

Income before income taxes

103,100

%

90,500

%

Income tax expense

33,400

%

27,100

%

Net income

$ 69,700

%

$ 63,400

%

2017

2016

Sales revenue $827,200 $626,800 Cost of goods sold 529,100 412,600 Selling expenses 121,800 73,700 Administrative expenses 73,200 50,000 Income tax expense 33,400 27,100 Net income 69,700 63,400

Explanation / Answer

Vertical analysis :

2017 2016 Amount Percent Amount Percent Saels 827200 100% 626800 100% Cost of goods sold 529100 64% 412600 65.8% Gross profit 298100 36.0% 214200 34.2% Selling expense 121800 14.7% 73700 11.8% Administrative expense 73200 8.8% 50000 8.0% Total operating expense 195000 23.6% 123700 19.7% Income before taxes 103100 12.5% 90500 14.4% Income tax expense 33400 4.0% 27100 4.3% Net income 69700 8.4% 63400 10.1%