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P2. (10 points) London Company provided the following income statements for its first 2 years of operation. Prepare a vertical analysis of London Company's results.

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P2. (10 points) London Company provided the following income statements for its first 2 years of operation. Prepare a vertical analysis of London Company's results. Year 1 Year 2 Net sales $975,000 $1,150,000 Less: cost of goods sold (676,000) (910,000) Gross margin $299,000 $ 240,000 Less: Operating expenses (185,000) (215,000) Income taxes (45,600) (10,000) $ 15,000 Net income $68.400

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