E13-3 Preparing and Interpreting a Schedule for Horizontal and Vertical Analysis

Please help with VERTICAL Analysis

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 Year Ended December 31 2010 2009 120,000 Sales Revenue 100,000 Cost of Goods Sold 60,000 71,500 Gross Profit 48,500 40,000 Selling, General and Administrative Expenses 36,000 37,000 Interest Expense 500 475 Income before Income Tax 3,500 11,025 Income Tax Expense 1,000 5,000 S 2,500 S Net Income 6,025