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HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Selling expenses Administrative expenses a. Prepare an income statement in comparative form, stating each item for both years as a perces sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Income tax expense $483,000 280,140 82,110 86,940 14,490 $ Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 000 Current year Percent percentage points, and administrative expenses ( net income as a percent of sales % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % BE $ Previous year Amount $420,000 218,400 79,800 71,400 21,000 b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses ( Previous y Percent by 3 percentage points. % % % % % % % 0 O by 1 percentage poir

HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Selling expenses Administrative expenses a. Prepare an income statement in comparative form, stating each item for both years as a perces sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Income tax expense $483,000 280,140 82,110 86,940 14,490 $ Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 000 Current year Percent percentage points, and administrative expenses ( net income as a percent of sales % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % BE $ Previous year Amount $420,000 218,400 79,800 71,400 21,000 b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses ( Previous y Percent by 3 percentage points. % % % % % % % 0 O by 1 percentage poir

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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#becausesneaker.... HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Custom Order Sales Cost of merchandise sold Selling expenses a. Prepare an income statement in comparative form, statin each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Administrative expenses Income tax expense $483,000 280,140 82,110 86,940 14,490 Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 percentage points, and administrative expenses net income as a percent of sales Current year Percent % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % Previous year Amount $420,000 218,400 79,800 71,400 21,000 Previous year Percent b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses % % % % % % % % % ? by 2 by 1 percentage points. Thus, by 3 percentage points.
Transcribed Image Text:#becausesneaker.... HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Custom Order Sales Cost of merchandise sold Selling expenses a. Prepare an income statement in comparative form, statin each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Administrative expenses Income tax expense $483,000 280,140 82,110 86,940 14,490 Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 percentage points, and administrative expenses net income as a percent of sales Current year Percent % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % Previous year Amount $420,000 218,400 79,800 71,400 21,000 Previous year Percent b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses % % % % % % % % % ? by 2 by 1 percentage points. Thus, by 3 percentage points.
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