Solved

Prepare a Vertical Analysis of the Income Statement Shown Below

Question 61

Essay

Prepare a vertical analysis of the income statement shown below.(Round to two decimal places. )
Trucker, Inc.Income StatementFor the Year Ended December 31, 2017 Net Sales $7,000 Cost of Goods Sold 3,800 Gross Profit 3,200 Operating Expenses:  Selling Expenses 950 Administrative Expenses 670 Total Operating Expenses 1,620 Operating Income 1,580 Other Revenues and (Expenses):  Interest Revenue 0 Interest Expense (750) Total Revenues and (Expenses) (750) Income Before Income Taxes 830 Income Tax Expense 150 Net Income $680\begin{array}{c}\text {Trucker, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2017}\\\\\begin{array}{lr}\text { Net Sales } & \$ 7,000 \\\text { Cost of Goods Sold } & \underline{3,800} \\\text { Gross Profit } & 3,200\\\text { Operating Expenses: }\\\text { Selling Expenses } & 950 \\\text { Administrative Expenses } & \underline{670} \\\text { Total Operating Expenses } & \underline{1,620} \\\text { Operating Income } & 1,580 \\\text { Other Revenues and (Expenses): } &\\\text { Interest Revenue } & 0 \\\text { Interest Expense } & \underline{(750)} \\\text { Total Revenues and (Expenses) } & \underline{(750)} \\\text { Income Before Income Taxes } & 830 \\\text { Income Tax Expense } &\underline{150} \\\text { Net Income } & \underline{\$ 680}\end{array}\end{array}

Correct Answer:

verifed

Verified

None...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents