Using the following operating data for Complex Corporation prepare a schedule showing a vertical analysis for 2017. 2017 2016 Net sales $ 360 , 000 $ 320 , 000 Cost of goods sold 210 , 000 180 , 000 Operating expenses 112 , 000 100 , 000 Net income 38 , 000 40 , 000 \begin{array}{lrr} & 2017 & 2016\ ext { Net sales } & \$ 360,000 & \$ 320,000 \ ext { Cost of goods sold } & 210,000 & 180,000 \ ext { Operating expenses } & 112,000 & 100,000 \ ext { Net income } & 38,000 & 40,000\end{array} Net sales Cost of goods sold Operating expenses Net income 2017 $360 , 000 210 , 000 112 , 000 38 , 000 2016 $320 , 000 180 , 000 100 , 000 40 , 000

Question

Using the following operating data for Complex Corporation prepare a schedule showing a vertical analysis for 2017.   2017 2016  Net sales  $ 360 , 000 $ 320 , 000  Cost of goods sold  210 , 000 180 , 000  Operating expenses  112 , 000 100 , 000  Net income  38 , 000 40 , 000 \begin{array}{lrr} & 2017 & 2016\	ext { Net sales }  &  \$ 360,000  &  \$ 320,000 \	ext { Cost of goods sold }  &  210,000  &  180,000 \	ext { Operating expenses }  &  112,000  &  100,000 \	ext { Net income }  &  38,000  &  40,000\end{array}  Net sales   Cost of goods sold   Operating expenses   Net income  ​ 2017 $360 , 000 210 , 000 112 , 000 38 , 000 ​ 2016 $320 , 000 180 , 000 100 , 000 40 , 000 ​

William Adams · Accepted Answer

Final Answer :   Amount   Percent   Net sales  $ 360 , 000 100 %  Cost of goods sold  210 , 000 58.3 %  Gross profit  150 , 000 41.7 %  Operating expenses  112 , 000 31.1 %  Net income  $ 38 , 000 10.6 % \begin{array}{lr} & 	ext { Amount }  & 	ext { Percent }\	ext { Net sales }  &  \$ 360,000 & 100\% \	ext { Cost of goods sold }  &  210,000  & 58.3\%\ 	ext { Gross profit }  &  150,000  & 41.7\%\	ext { Operating expenses }  &  112,000  & 31.1\%\	ext { Net income }  &  \$ 38,000 & 10.6\%\end{array}  Net sales   Cost of goods sold   Gross profit   Operating expenses   Net income  ​  Amount  $360 , 000 210 , 000 150 , 000 112 , 000 $38 , 000 ​  Percent  100% 58.3% 41.7% 31.1% 10.6% ​

Definitions

Learning Objectives

Learning Objectives

Related questions