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Please Complete the Vertical Analysis of the Income Statement Data

Question 59

Essay

Please complete the vertical analysis of the income statement data shown on the form below:
 Dollar amounts in millions) 2014 Revenues  Amount  % of total  Cost of revenues $6,355 Gross profit 2,370 Operating expenses:  Sales and marketing expense 675 General and administrative expense 410 Research and development expense 470 Other expense 400 Total operating expenses $1,955 Income before income tax $1,030 Income tax expense 230 Net income (loss) $800\begin{array} { | l | r | r | } \hline \text { Dollar amounts in millions) } & { \mathbf { 2 0 1 4 } } \\\hline \text { Revenues } & \text { Amount } & \text { \% of total } \\\hline \text { Cost of revenues } & \$ 6,355 & \\\hline \text { Gross profit } & 2,370 & \\\hline \text { Operating expenses: } & & \\\hline \text { Sales and marketing expense } & 675 & \\\hline \text { General and administrative expense } & 410 & \\\hline \text { Research and development expense } & 470 & \\\hline \text { Other expense } & 400 & \\\hline \text { Total operating expenses } & \$ 1,955 & \\\hline & & \\\hline \text { Income before income tax } & \$ 1,030 & \\\hline \text { Income tax expense } & 230 & \\\hline \text { Net income (loss) } & \$ 800 & \\\hline\end{array}

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