Operating data for Navarro Corporation are presented below. 2017 2016 66,500 Pre
ID: 2486531 • Letter: O
Question
Operating data for Navarro Corporation are presented below.
2017
2016
66,500
Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round answers to 1 decimal place, e.g. 48.5%.)
NAVARRO CORPORATION
Condensed Income Statements
For the Years Ended December 31
2017
2016
Amount
Percent
Amount
Percent
Net sales
$754,000
$605,000------------------%
Cost of goods sold
465,500
%
392,500
Gross profit
288,500
212,500
Selling expenses
122,000
69,500
Administrative expenses
61,500
54,500
Total operating expenses
183,500
124,000
Income before income taxes
105,000
88,500
Income taxes expense
33,000
22,000
Net income
$72,000
$66,500
2017
2016
Net sales $754,000 $605,000 Cost of goods sold 465,500 392,500 Selling expenses 122,000 69,500 Administrative expenses 61,500 54,500 Income tax expense 33,000 22,000 Net income 72,00066,500
Explanation / Answer
NAVARRO CORPORATION Condensed Income Statements For the years Ended December 31 2017 2017 Amount % Amount % Net Sales $ 7,54,000 100.00% $ 6,05,000 100.00% Cost of goods sold $ 4,65,500 61.74% $ 3,92,500 64.88% Gross profit $ 2,88,500 38.26% $ 2,12,500 35.12% Selling expenses $ 1,22,000 16.18% $ 69,500 11.49% Administrative expenses $ 61,500 8.16% $ 54,500 9.01% Total operating expenses $ 1,83,500 24.34% $ 1,24,000 20.50% Income before income taxes $ 1,05,000 13.93% $ 88,500 14.63% Income tax expense $ 33,000 4.38% $ 22,000 3.64% Net Income $ 72,000 9.55% $ 66,500 10.99%
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