E10-4A. 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