Income statement information for Einsworth Corporation follows: Sales $280,000 Cost of goods sold 86,800 Gross profit 193,200 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth Corporation Vertical Analysis of the Income Statement Amount Percentage Sales $280,000 100 v % Cost of goods sold 86,800 Gross profit $193,200 X %
Income statement information for Einsworth Corporation follows: Sales $280,000 Cost of goods sold 86,800 Gross profit 193,200 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth Corporation Vertical Analysis of the Income Statement Amount Percentage Sales $280,000 100 v % Cost of goods sold 86,800 Gross profit $193,200 X %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...
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I am so confused. I did the vertical analysis. I divided the cost of goods sold by the sales and still says I'm incorrect. Even when I try to compute the profit percentage it still says wrong.
Transcribed Image Text:Income statement information for Einsworth Corporation follows:
Sales
$280,000
Cost of goods sold
86,800
Gross profit
193,200
Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number.
Einsworth Corporation
Vertical Analysis of the Income Statement
Amount Percentage
Sales
$280,000
100 V %
Cost of goods sold 86,800
Gross profit
$193,200
X %
Expert Solution
Step 1
The vertical analysis is a part of the comparative analysis. This analysis helps to analyze the performance of the business entity.
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