VERTICAL ANALYSISGive the analysis per line item.Sabina ElectronicsComparative Income StatementThis yearLast yearThis year5,000,0003,875,0001,125,000653,000472,00072,000400,000120,000280,000110,000Last year4,350,0003,450,000900,000548,000352,00072,000280,00084,000196,00095,000Sales100%100%Cost of goods soldGross marginSelling and administrative expensesNet operating incomeInterest expenseNet income before taxes78%79%23%21%13%13%9%8%1%2%6%2%5%2%8%Income taxes (30%)Net income2%6%Common dividends2%101,000579,000680,000Net income retained170,0003%2%Beginning retained earningsEnding retained earnings680,000850,000

The Statement of Comprehensive Income - The statement of comprehensive income is the profit earned…

VERTICAL ANALYSIS Give the analysis per line item. Sabina Electronics Comparative Income Statement This year 5,000,000 3,875,000 1,125,000 653,000 472,000 72,000 400,000 120,000 280,000 110,000 Last year 4,350,000 3,450,000 900,000 This year 100% Last year 100% Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 78% 79% 23% 21% 13% 13% 548,000 352,000 72,000 280,000 84,000 196,000 95,000 101,000 9% 8% 2% 1% Net income before taxes 8% Income taxes (30%) Net income 2% 6% 6% 2% 5% Common dividends 2% 2% Net income retained 3% 2% Beginning retained earnings Ending retained earnings 170,000 680,000 850,000 579,000 680,000

VERTICAL ANALYSIS Give the analysis per line item. Sabina Electronics Comparative Income Statement This year 5,000,000 3,875,000 1,125,000 653,000 472,000 72,000 400,000 120,000 280,000 110,000 Last year 4,350,000 3,450,000 900,000 This year 100% Last year 100% Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense 78% 79% 23% 21% 13% 13% 548,000 352,000 72,000 280,000 84,000 196,000 95,000 101,000 9% 8% 2% 1% Net income before taxes 8% Income taxes (30%) Net income 2% 6% 6% 2% 5% Common dividends 2% 2% Net income retained 3% 2% Beginning retained earnings Ending retained earnings 170,000 680,000 850,000 579,000 680,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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