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Income Statement (vertical) report with a run date of 12/31/-. Provide a narrative analysis of this report in a manner similar to that done in

Income Statement (vertical) report with a run date of 12/31/-. Provide a narrative analysis of this report in a manner similar to that done in the chapter. Use your own words based on the information provided in this report.

Casey Corporation
Income Stmt. Vertical Analysis
For Years Ended 12/31/17 and 12/31/18
Current Current Previous Previous
Amount Percent Amount Percent
Operating Revenue
Sales 869,695.50 101.91 836,490.00 101.16
Sales Returns & Allow. -9,150.00 -1.07 -6,000.00 -0.73
Sales Discounts -7,154.01 -0.84 -3,595.00 -0.43
------------- ------------- ------------- ----------
Total Operating Revenue 853,391.49 100 826,895.00 100
Cost
Cost of Merchandise Sold 592,660.00 69.45 593,255.00 71.74
------------- ------------- ------------- ----------
Total Cost 592,660.00 69.45 593,255.00 71.74
------------- ------------- ------------- ----------
Gross Profit 260,731.49 30.55 233,640.00 28.26
Operating Expenses
Sales Salaries Expense 74,368.94 8.71 63,873.10 7.72
Advertising Expense 13,750.00 1.61 11,500.00 1.39
Depr. Exp. Store Eqpt. 3,935.00 0.46 2,960.00 0.36
Insurance Expense Selling 4,595.00 0.54 3,350.00 0.41
Store Supplies Expense 820.32 0.1 1,729.30 0.21
Misc. Selling Expense 850 0.1 1,525.00 0.18
------------- ------------- ------------- ----------
Selling Expenses 98,319.26 11.52 84,937.40 10.27
Office Salaries Expense 20,386.61 2.39 20,377.00 2.46
Utilities Expense 8,991.47 1.05 8,776.72 1.06
Depr. Exp. Building 19,000.00 2.23 17,000.00 2.06
Depr. Exp. Office Eqpt. 2,020.00 0.24 1,135.00 0.14
Insurance Expense General 2,500.00 0.29 1,800.00 0.22
Office Supplies Expense 1,503.74 0.18 613.4 0.07
Misc. General Expense 400 0.05 415 0.05
------------- ------------- ------------- ----------
Administrative Expenses 54,801.82 6.42 50,117.12 6.06
------------- ------------- ------------- ----------
Total Operating Expenses 153,121.08 17.94 135,054.52 16.33
------------- ------------- ------------- ----------
Net Income from Operations 107,610.41 12.61 98,585.48 11.92
Other Revenue
Interest Income 815.5 0.1 1,833.00 0.22
Gain on Sale Office Eqpt. 130 0.02
Gain on Sale Store Eqpt. 65 0.01
Other Expense
Interest Expense 10,779.80 1.26 6,211.14 0.75
------------- ------------- ------------- ----------
Net Income before Income Tax 97,711.11 11.45 94,337.34 11.41
Income Tax
Corporate Income Tax 26,800.00 3.14 24,872.00 3.01
------------- ------------- ------------- ----------
Net Income after Income Tax 70,911.11 8.31 69,465.34 8.4
============= ============= ============= ==========

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