From the French Instrument Corporation second-quarter report ended 2020, do a vertical analysis for the second quarter of 2020. (Input all answers as positive values except other (income) which should be indicated by a minus sign. Round your answers to the nearest hundredth percent.) FRENCH INSTRUMENT CORPORATION AND SUBSIDIARIESConsolidated Statements of Operation(Unaudited) (In thousands of dollars, except share data) Second Quarter 20202019Percent of netNet sales$6,698$6,951 Cost of sales4,0894,462 Gross margin2,6092,489 Expenses: Selling, general and administrative1,8451,783 Product development175165 Interest expense98123 Other (income), net(172)(99) Total expenses1,9461,972 Income before income taxes663517 Provision for income taxes265209 Net income$398$308 Net income per common share*$0.05$0.03 Weighted average number of common shares and equivalents6,673,6736,624,184*Income per common share reflects the deduction of the preferred stock dividend from net income.

A vertical analysis is one of the financial statement analysis in which one base item is chosen and…

Answered: From the French Instrument Corporation…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 1PB

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From the French Instrument Corporation second-quarter report ended 2020, do a vertical analysis for the second quarter of 2020. (Input all answers as positive values except other (income) which should be indicated by a minus sign. Round your answers to the nearest hundredth percent.)

FRENCH INSTRUMENT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operation
(Unaudited) (In thousands of dollars, except share data)
	Second Quarter
	2020	2019	Percent of net
Net sales	$6,698	$6,951
Cost of sales	4,089	4,462
Gross margin	2,609	2,489
Expenses:
Selling, general and administrative	1,845	1,783
Product development	175	165
Interest expense	98	123
Other (income), net	(172)	(99)
Total expenses	1,946	1,972
Income before income taxes	663	517
Provision for income taxes	265	209
Net income	$398	$308
Net income per common share*	$0.05	$0.03
Weighted average number of common shares and equivalents	6,673,673	6,624,184

*Income per common share reflects the deduction of the preferred stock dividend from net income.

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