1Exercise 14-4

Operating data for Joshua Corporation are presented below.

2020

2019

Sales revenue

$749,000

$605,000

Cost of goods sold

462,133

390,830

Selling expenses

122,087

67,760

Administrative expenses

64,414

55,055

Income tax expense

30,709

23,595

Net income

69,657

67,760

Prepare a schedule showing a vertical analysis for 2020 and 2019.(Round answers to 1 decimal place, e.g. 48.5%.)

JOSHUA CORPORATION

Condensed Income Statements

For the Years Ended December 31

2020

2019

Amount

Percent

Amount

Percent

Sales revenue

$749,000

%

$605,000

%

Cost of goods sold

462,133

%

390,830

%

Gross profit

286,867

%

214,170

%

Selling expenses

122,087

%

67,760

%

Administrative expenses

64,414

%

55,055

%

Total operating expenses

186,501

%

122,815

%

Income before income taxes

100,366

%

91,355

%

Income taxes expense

30,709

%

23,595

%

Net income

$69,657

%

$67,760

%