Vertical Analysis of the Income Statement
P Town O’Malley’s 2000 income statement reported net income of $6 million. A vertical analysis of the income statement shows the following:
|
Net sales percentage |
?% |
|
Cost of products sold percentage |
? |
|
Gross profit percentage |
48 |
|
Selling and administrative expense percentage |
? |
|
Operating income percentage |
? |
|
Income tax* percentage |
? |
|
Net income percentage |
6 |
|
*Income tax rate: 40% of operating income. |
Required
Determine the missing percentages and the dollar amounts that are reported in P Town’s income statement for each of the above items.