Exercise 14-2 Condensed data from the income statement for Benton Corporation fo

Question

Exercise 14-2 Condensed data from the income statement for Benton Corporation follow: (a) Using vertical analysis, calculate the percentage of the base amount for each year. (Round answers to 1 decimal place, eg, 15.2%.) BENTON CORPORATION Vertical Analysis of Income Statement 2018 2017 Amount $801,000 554,000 247,000 157,000 90,000 15,000 $75,000 Percent Amount % $604,000 % 373,000 % 231,000 % 126,000 % 105,000 20,000 96 $85,000 Percent Net sales Cost of goods sold Gross profit Operating expenses Income before income tax Income tax expense Net income

Explanation / Answer

2018 2017 Amount Percent Amount Percent Net sales 801000 100.0% 604000 100.0% Cost of goods sold 554000 69.2% 373000 61.8% Gross profit 247000 30.8% 231000 38.2% Operating expenses 157000 19.6% 126000 20.9% Income before income tax 90000 11.2% 105000 17.4% Income tax expense 15000 1.9% 20000 3.3% Net income 75000 9.4% 85000 14.1%

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.