E1-0-48. Vertical analysis. (LO 2)
Use the income statement from Designers Discount Inc. to perform a vertical analysis with sales as the base.
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Designers Discount Inc. Income Statement For the year ended March 28, 2008 |
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Sales revenue |
$16,374 |
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Cost of goods sold |
7,985 |
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Gross profit on sales |
$ 8,389 |
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Operating expenses: |
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Depreciation-buildings and equipment |
$265 |
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Other selling and administrative |
3,750 |
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Total expenses |
4,015 |
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Income before interest and taxes |
$4374 |
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Interest expense |
254 |
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Income before taxes |
$4,120 |
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Income taxes |
1,236 |
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Net income |
$ 2,884 |