Need vertical analysis of this data. First number is 2011 second is 2010 Net Sal
ID: 2390278 • Letter: N
Question
Need vertical analysis of this data. First number is 2011 second is 2010Net Sales 48,815 47,220
Costs of Sales 31,663 30,757
Gross Margin 17,152 16,463
Expenses:
Selling, General and Administrative 12,006 11,737
Depreciation 1,586 1,614
Interest - net 332 287
Total expenses 13,924 13,638
Pre-tax earnings 3,228 2,825
Income tax provision 1,218 1,042
Net earnings 2,010 1,783
Basic earnings per common share $1.42 $1.21
Diluted earnings per common share $1.42 $1.21
Cash dividends per share $0.420 $0.355
Explanation / Answer
common-size percents
2011
2010
2011
2010
net sales
48815
47220
100.0000%
100.0000%
cost of sales
31663
30757
64.8633%
65.1355%
gross margin
17152
16463
35.1367%
34.8645%
expenses:
selling, G and A
12006
11737
24.5949%
24.8560%
Depreciation
1586
1614
3.2490%
3.4180%
Interest - net
332
287
0.6801%
0.6078%
Total expenses
13924
13638
28.5240%
28.8818%
Pre-tax earnings
3228
2825
6.6127%
5.9826%
Income tax provisions
1218
1042
2.4951%
2.2067%
Net earnings
2010
1783
4.1176%
3.7759%
Basic EPS
1.42
1.21
0.0029%
0.0026%
diluted EPS
1.42
1.21
0.0029%
0.0026%
Cash Dividends per share
0.42
0.355
0.0009%
0.0008%
The percents were found by taking each number and dividing by the net sales for that year.
For example: Cost of sales for 2011: 31663/48815 = 0.648633 or 64.8633%.
Another example income tax provisions for 2010: 1042/47220 = 0.022067 or 2.2067%
common-size percents
2011
2010
2011
2010
net sales
48815
47220
100.0000%
100.0000%
cost of sales
31663
30757
64.8633%
65.1355%
gross margin
17152
16463
35.1367%
34.8645%
expenses:
selling, G and A
12006
11737
24.5949%
24.8560%
Depreciation
1586
1614
3.2490%
3.4180%
Interest - net
332
287
0.6801%
0.6078%
Total expenses
13924
13638
28.5240%
28.8818%
Pre-tax earnings
3228
2825
6.6127%
5.9826%
Income tax provisions
1218
1042
2.4951%
2.2067%
Net earnings
2010
1783
4.1176%
3.7759%
Basic EPS
1.42
1.21
0.0029%
0.0026%
diluted EPS
1.42
1.21
0.0029%
0.0026%
Cash Dividends per share
0.42
0.355
0.0009%
0.0008%
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