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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 72,000

66,500

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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