Complete the vertical analysis given data for the XYZ Company XYZ Company Income

Question

Complete the vertical analysis given data for the XYZ Company

XYZ Company Income Statement For the year ended 12/31/15 Vertical Analysis 12/31/14 Vertical Analysis Net sales $435,760 $335,200 Cost of goods sold 135,465 105,230 Gross profit 300,295 229,970 Research & development 50,000 55,000 Selling expenses 49,400 38,000 Administrative expenses 156,900 142,100 Depreciation expense 74,000 36,000 Patent amortization expense 4,000 333 Income (loss) from operations -34,005 -41,463 Other revenue (expense), net -25,400 427 Net income (loss) ($59,405) ($41,036) * Comprised mostly of Interest Expense for 2015 Comment on the significance of the trend results:

Explanation / Answer

Net income(Loss) at 2015=$59405

but interest will deducted of Net income.

Mariginal profit formula is sales-cost of goods sold=contributation-fixed cost=Profit

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