BERNARDO SUPPLY CO., INC. Page 3 STATEMENT OF INCOME December 31, 2020 and 2019 2020 Vert. 2019 Horizontal SALES $ 6, 746, 474 160 $ 6,502, 799 243 675 COST OF GOODS SOLD 5, 165,317 76% 4,919,075 GROSS PROFIT 1,581, 157 1,583,724 SELLING AND ADMINISTRATIVE EXPENSES 1,355,331 20% 1,437,287 OPERATING INCOME 225,826 146,436 OTHER INCOME (EXPENSE) Dividend income 111 Interest expense (15,274) (12,791) Total other income (expense) (15,274) (12,680) NCOME BEFORE INCOME TAXES 210,552 133,756 ROVISION FOR INCOME TAXES NET INCOME $ 210,552 133,756 equired: Horizontal Analysis Vertical Analysis For the balance sheet, use Total Assets as your key element For the statement of income, use Sales as your key element Calculate vertical analysis for 2020 ONLY Ratios Current ratio Quick ratio Return on assets Gross margin ROUND YOUR ANSWERS UP 2 DECIMAL POINTS ountants' compilation report