E13-3 (Algo) Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses [LO 13-2, 13-3, 13-5]

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016.

Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place.)

COMPUTER TYCOON, INC.
Income Statements
For the Year Ended December 31
	2016			2015
Sales Revenue	$102,000		%	$123,000		%
Cost of Goods Sold	61,000		%	72,300		%
Gross Profit	41,000		%	50,700		%
Selling, General, and Administrative Expenses	36,200		%	37,400		%
Interest Expense	520		%	485		%
Income before Income Tax Expense	4,280		%	12,815		%
Income Tax Expense	1,000		%	5,200		%
Net Income	$3,280		%	$7,615		%