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2015 2014 NAVARRO CORPORATION Condensed Income Statements For the Years Ended De

ID: 2427271 • Letter: 2

Question

2015

2014

NAVARRO CORPORATION
Condensed Income Statements
For the Years Ended December 31

2015

2014

Amount

Percent

Amount

Percent

Net sales

$747,590

$598,500

Cost of goods sold

464,480

394,810

Gross profit

283,110

203,690

Selling expenses

122,560

71,310

Administrative expenses

64,810

52,040

Total operating expenses

187,370

123,350

Income before income taxes

95,740

80,340

Income taxes expense

34,690

23,810

Net income

$61,050

$56,530

Operating data for Navarro Corporation are presented below.

2015

2014

Net sales $747,590 $598,500 Cost of goods sold 464,480 394,810 Selling expenses 122,560 71,310 Administrative expenses 64,810 52,040 Income tax expense 34,690 23,810 Net income 61,050 56,530

Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place, e.g. 48.5%.)

NAVARRO CORPORATION
Condensed Income Statements
For the Years Ended December 31

2015

2014

Amount

Percent

Amount

Percent

Net sales

$747,590

%

$598,500

%

Cost of goods sold

464,480

%

394,810

%

Gross profit

283,110

%

203,690

%

Selling expenses

122,560

%

71,310

%

Administrative expenses

64,810

%

52,040

%

Total operating expenses

187,370

%

123,350

%

Income before income taxes

95,740

%

80,340

%

Income taxes expense

34,690

%

23,810

%

Net income

$61,050

%

$56,530

%

Explanation / Answer

NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31 2015 2014 Amount Percent Amount Percent Net sales 747590 100% 598500 100% Cost of goods sold 464480 62.13 394810 65.97 Gross Profit 283110 37.87 203690 34.03 Selling expenses 122560 16.39 71310 11.91 Administrative expenses 64810 8.67 52040 8.70 Total operating expenses 187370 25.06 123350 20.61 Income before income taxes 95740 12.81 80340 13.42 Income taxes expense 34690 4.64 23810 3.98 Net Income 61050 8.17 56530 9.45