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In 2020, Sally had the following results (she's an honest woman): Here are the numbers for 2021: Gross Sales 1,050,000 100 Gross Sales 1,100,100 Less:
In 2020, Sally had the following results (she's an honest woman): | Here are the numbers for 2021: | |||
Gross Sales | 1,050,000 | 100 | Gross Sales | 1,100,100 |
Less: Sales Returns | (100,000) | Less: Sales Returns | (100,100) | |
Net Sales | 950,000 | Net Sales | 1,000,000 | |
Cost Of Goods Sold: | Cost of Goods sold: | |||
Beginning Inventory | 220,000 | Beginning Inventory | 200,000 | |
Purchases | 600,000 | Purchases | 700,000 | |
Less: Purchase Allowances | (50,000) | Less: Purchase Allowances | (60,000) | |
Less: Ending Inventory | (200,000) | Less: Ending Inventory | (150,000) | |
Cost of Goods Sold | 570,000 | Cost of Goods Sold | 690,000 | |
Gross Profit | 380,000 | Gross Profit | 310,000 | |
Less: Operating Expenses | (200,000) | Less: Operating Expenses | (200,000) | |
Less: Payroll Expenses | - | Less: Payroll Expenses | (100,000) | |
Operating Income | 180,000 | Operating Income | 10,000 | |
Less: Interest Expense | 0 | Less: Interest Expense | (40,000) | |
Net Income | 180,000 | Net Income | (30,000) |
Can someone please help me with a vertical analysis comparison of the two years financial statements for 2020 and 2021 in percentages?
Also what do you think is going on between the two years?
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