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Preparing a Vertical Analysis of an Income statement.

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Operating data is presented below:

2009 2008
Sales $750,000 $600,000
Cost of Goods Sold $465,000 $390,000
Selling Expenses $120,000 $72,000
Administrative Expenses $60,000 $54,000
Income Tax Expense $33,000 $24,000
Net Income $72,000 $60,000

Prepare a schedule showing a vertical analysis for 2009 and 2008.

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Solution Summary

This solution deals with preparing a vertical analysis of an income statement.

Solution provided by:
Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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