Operating data for Swifty Corporation are presented below. 2022 2021Sales revenue $830,700 $634,900 Cost of goods sold 529,000 415,000 Selling expenses 124,700 73,600 Administrative expenses 78,800 53,900 Income tax expense 33,500 23,400 Net income 64,700 69,000 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e. g. 12.1%.)

Question

Business

Kai

20 May, 16:54

Operating data for Swifty Corporation are presented below. 2022 2021Sales revenue $830,700 $634,900 Cost of goods sold 529,000 415,000 Selling expenses 124,700 73,600 Administrative expenses 78,800 53,900 Income tax expense 33,500 23,400 Net income 64,700 69,000 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e. g. 12.1%.)

+3

Answers (1)

Know the Answer?

Smarty · Answer 1

Answer and Explanation:

The preparation of the vertical analysis is presented below:

Particulars Amount % Amount %

Sales $830,700 100 $634,900 100

Less:

Cost of goods sold $529,000 63.7 $415,000 65.4

Gross Profit $301,700 36.3 $219,900 34.5

Less:

Selling Expenses $124,700 15.0 $73,600 11.6

administrative expenses $78,800 9.5 $53,900 8.5

Total Operating

expenses $203,500 24.5 $127,500 20.9

Income before

income taxes $98,200 11.8 $92,400 14.5

Less:

Income tax expenses $33,500 4.0 $23,400 3.7

Net Income $64,700 7.8 $69,000 10.8

Working note

The percentage is like

= Items value : sales * 100

Like for cost of goods sold

= $529,000 : $830,700 * 100

= 63.68%

It is same applicable for other items also