COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
						Horizontal
			2014	2013	Difference	Analysis
Sales			$485,625	$462,500
Cost of goods sold			222,694	208,125
Gross profit			262,931	254,375
Operating expenses
Salaries & wages expense			147,979	146,350
Depreciation expense			17,600	9,100
Other operating expenses			48,186	42,925
Total operating expenses			213,765	198,375
Income from operations			49,166	56,000
Other expenses
Interest expense			413	0
Loss on sale of computer
equipment			2,500	0
Total other expenses			2,913	0
Income before income tax			46,253	56,000
Income tax expense			9,251	14,000
Net income			$37,002	$42,000
Prepare a vertical analysis of the income statement for Cookie & Coffee Creations for 2014 and 2013
COOKIE & COFFEE CREATIONS INC.
Income Statement
For the Year Ended October 31
				Vertical		Vertical
			2014	Analysis	2013	Analysis
Sales			$485,625		$462,500
Cost of goods sold			222,694		208,125
Gross profit			262,931		254,375
Operating expenses
Salaries & wages expense			147,979		146,350
Depreciation expense			17,600		9,100
Other operating expenses			48,186		42,925
Total operating expenses			213,765		198,375
Income from operations			49,166		56,000
Other expenses
Interest expense			413		0
Loss on sale of computer
equipment			2,250		0
Total other expenses			2,663		0
Income before income tax			46,253		56,000
Income tax expense			9,251		14,000
Net income			$37,002		$42,000