Operating data for Riverbed Corp are presented below. 2022 2021 Sales revenue $850,500 $643,000 Cost of goods sold 529,000 409,600 Selling expenses 121,800 75,900 Administrative expenses 73,300 50,700 Income tax expense 33,000 23,500 Net income 93,400 83,300 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.) RIVERBED CORP Condensed Income Statement choose the accouning period For the Years Ended December 31December 31For the Month Ended December 31 2022 2021 Amount Percent Amount Percent Sales $850,500 enter percentages % $643,000 enter percentages % Cost of goods sold 529,000 enter percentages % 409,600 enter percentages % Gross profit 321,500 enter percentages % 233,400 enter percentages % Selling expenses 121,800 enter percentages % 75,900 enter percentages % Administrative expenses 73,300 enter percentages % 50,700 enter percentages % Total operating expenses 195,100 enter percentages % 126,600 enter percentages % Income before income taxes 126,400 enter percentages % 106,800 enter percentages % Income tax expense 33,000 enter percentages % 23,500 enter percentages % Net income $ 93,400 enter percentages % $ 83,300 enter percentages %
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Operating data for Riverbed Corp are presented below.
|
2022
|
2021
|
|||
|---|---|---|---|---|
|
Sales revenue
|
$850,500 | $643,000 | ||
|
Cost of goods sold
|
529,000 | 409,600 | ||
|
Selling expenses
|
121,800 | 75,900 | ||
|
Administrative expenses
|
73,300 | 50,700 | ||
|
Income tax expense
|
33,000 | 23,500 | ||
|
Net income
|
93,400 | 83,300 |
Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)
|
RIVERBED CORP
Condensed Income Statement choose the accouning period For the Years Ended December 31December 31For the Month Ended December 31 |
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|---|---|---|---|---|---|---|---|---|---|
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2022
|
2021
|
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|
Amount
|
Percent
|
Amount
|
Percent
|
||||||
|
Sales
|
$850,500
|
enter percentages
|
%
|
$643,000
|
enter percentages
|
%
|
|||
|
Cost of goods sold
|
529,000
|
enter percentages
|
%
|
409,600
|
enter percentages
|
%
|
|||
|
Gross profit
|
321,500
|
enter percentages
|
%
|
233,400
|
enter percentages
|
%
|
|||
|
Selling expenses
|
121,800
|
enter percentages
|
%
|
75,900
|
enter percentages
|
%
|
|||
|
Administrative expenses
|
73,300
|
enter percentages
|
%
|
50,700
|
enter percentages
|
%
|
|||
|
Total operating expenses
|
195,100
|
enter percentages
|
%
|
126,600
|
enter percentages
|
%
|
|||
|
Income before income taxes
|
126,400
|
enter percentages
|
%
|
106,800
|
enter percentages
|
%
|
|||
|
Income tax expense
|
33,000
|
enter percentages
|
%
|
23,500
|
enter percentages
|
%
|
|||
|
Net income
|
$ 93,400
|
enter percentages
|
%
|
$ 83,300
|
enter percentages
|
%
|
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