Vertical analysis. (LO 2)
Use the income statement from Color Copy to perform a vertical analysis with sales as the base.
|
Color Copy Inc.
Income Statement
For the year ended September 30,2OO7
|
|
Sales revenue
|
|
$10,228
|
|
Cost of goods sold
|
|
5,75
|
|
Gross profit
|
|
$4,477
|
|
Operating expenses:
|
|
|
|
Depreciation-buildings and equipment
|
$ 100
|
|
|
Other selling and administrative
|
2,500
|
|
|
Total expenses
|
|
2,600
|
|
Income before interest and taxes
|
|
$ 1,877
|
|
Interest expense
|
|
350
|
|
Income before taxes
|
|
$1,527
|
|
Income taxes
|
|
150
|
|
Net income
|
|
1,377
|