Vertical Analysis
Not what you're looking for?
Sanchez Company reported the following operating results for 2 consecutive years.
2004 Amount Percent of Sales
Sales 500,000
Cost of Goods Sold 320,000
Gross Margin 180,000
Operating Expenses 100,000
Income Before Taxes 80,000
Income Taxes 24,000
Net Income 56,000
2005 Amount Percent of Sales
Sales 480,000
Cost of Goods Sold 307,000
Gross Margin 173,000
Operating Expenses 120,000
Income Before Taxes 53,000
Income Taxes 16,000
Net Income 37,000
Express each income statement component for each of the two years as a percent of sales.
Purchase this Solution
Solution Summary
This solution conducts a vertical analysis for a company.
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.