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Presented below is an income statement, with the past two years' results presented: 2016 2015 Revenue $4,200,000 $4,000,000 Cost of goods sold $2,910,000 $2,800,000 Gross

Presented below is an income statement, with the past two years' results presented:

2016 2015
Revenue $4,200,000 $4,000,000
Cost of goods sold $2,910,000 $2,800,000
Gross profit $1,290,000 $1,200,000
Selling cost $280,000 $250,000
Administrative cost $140,000 $120,000
Operating profit $870,000 $830,000
Interest expense $78,000 $80,000
Income before taxes $792,000 $750,000
Income taxes $277,200 $262,500
Net income $514,800 $487,500

Prepare a vertical analysis of both 2016 and 2015. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the income statement that may warrant further investigation from management.

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