Exercise 18-2

Operating data for Navarro Corporation are presented below.

2015	2014
Net sales	$752,390	$602,660
Cost of goods sold	462,980	391,980
Selling expenses	123,870	69,140
Administrative expenses	56,660	54,510
Income tax expense	31,590	21,960
Net income	77,290	65,070

Prepare a schedule showing a vertical analysis for 2015 and 2014.(Round answers to 1 decimal place, e.g. 48.5%.)

NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31
2015	2014
Amount	Percent	Amount	Percent
Net sales	$752,390	%	$602,660	%
Cost of goods sold	462,980	%	391,980	%
Gross profit	289,410	%	210,680	%
Selling expenses	123,870	%	69,140	%
Administrative expenses	56,660	%	54,510	%
Total operating expenses	180,530	%	123,650	%
Income before income taxes	108,880	%	87,030	%
Income taxes expense	31,590	%	21,960	%
Net income	$77,290	%	$65,070	%