Question 3: Complete a vertical analysis of the income statement below using revenue as the base. What does the analysis show? What questions could be asked?

	ABC corp.	Item as a percent of Sales Revenue
	Income Statement
	For the Year Ended Dec 31, 2024
Sales Revenue	$744,000
Cost of Goods Sold	425,000
Gross Margin	319,000
Salary Expense	150,000
Rent Expense	150,000
Utilities expense	15,000
Amortization expense	60,000
Total Expenses	375,000
Net Income (loss)	-$56,000
Questions we could ask: