Operating data for Jacobs Corporation are presented below. 2014 2013 Prepare a s
ID: 2489397 • Letter: O
Question
Operating data for Jacobs Corporation are presented below.
2014
2013
Prepare a schedule showing a vertical analysis for 2014 and 2013. (Round percentages to 1 decimal place, e.g. 12.1%.)
JACOBS CORPORATION
Condensed Income Statement
For the Years Ended December 31
2014
2013
Amount
Percent
Amount
Percent
Sales
$839,000
%
$637,300
%
Cost of goods sold
524,500
%
409,000
%
Gross profit
314,500
%
228,300
%
Selling expenses
126,400
%
77,200
%
Administrative expenses
75,200
%
49,500
%
Total operating expenses
201,600
%
126,700
%
Income before income taxes
112,900
%
101,600
%
Income tax expense
33,600
%
29,500
%
Net income
$ 79,300
%
$ 72,100
%
2014
2013
Sales revenue $839,000 $637,300 Cost of goods sold 524,500 409,000 Selling expenses 126,400 77,200 Administrative expenses 75,200 49,500 Income tax expense 33,600 29,500 Net income 79,300 72,100Explanation / Answer
Typically, this means that every line item on an income statement is stated as a percentage of gross sales.
Condensed Income Statement:
2014 2013 Amount % Amount % Sales 839000 100.0 637300 100.0 COGS 524500 62.5 409000 64.2 Gross Profit 314500 37.5 228300 35.8 Selling expenses 126400 15.0 77200 12.1 Admin expenses 75200 9.0 49500 7.8 Total Operating expenses 201600 24.0 126700 19.9 Income before income taxes 112900 13.5 101600 15.9 Income tax expense 33600 4.0 29500 4.6 Net Income 79300 9.5 72100 11.3Related Questions
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