The income statements for Federer Sports Apparel for 2019 and 2018 are presented

Question

The income statements for Federer Sports Apparel for 2019 and 2018 are presented below. Required: Prepare a vertical analysis of the data for 2019 and 2018. (Round your answers to 1 decimal place.)

FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2019 2018 Amount % Amount % Net sales $18,000,000 3,300,000.0 $14,700,000 Cost of goods sold 13,500,000 6,526,800 Gross profit 4,500,000 8,173,200 Operating expenses 1,386,000 1,014,300 Depreciation expense 810,000 837,900 Inventory write-down 54,000 0 Loss (litigation) 1,296,000 235,200 Income before tax 954,000 6,085,800 Income tax expense 288,000 1,778,700 Net income $666,000 $4,307,100

Explanation / Answer

The income statements for Federer Sports Apparel for 2019 and 2018 are presented below.

FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2019 2018 Amount % Amount % Net sales $18,000,000 100% $14,700,000 100% Cost of goods sold 13,500,000 75% 6,526,800 44.4% Gross profit 4,500,000 25% 8,173,200 55.6% Operating expenses 1,386,000 7.7% 1,014,300 6.9% Depreciation expense 810,000 4.5% 837,900 5.7% Inventory write-down 54,000 0.3% 0 0% Loss (litigation) 1,296,000 7.2% 235,200 1.6% Income before tax 954,000 5.3% 6,085,800 41.4% Income tax expense 288,000 1.6% 1,778,700 12.1% Net income $666,000 3.7% $4,307,100 29.3%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.