Use the excel file to complete an Income Statement for Thornton Company as well as perform a Vertical Analysis. **Please Do NOT just type in answers.**

**SHOW EXCEL FORMULAS** to calculate the missing amounts highlighted in yellow.

Thornton Company
Income Statement
For the Year Ending 2019
Sales		$960,000
Cost of Goods Sold		586,000
Gross Profit (gross margin)			use formula (show formula)
Operating Expenses	254,400
Interest Expense	24,000
Total Expenses		278,400
Income before taxes			use formula (show formula)
Income tax expense		52,800
Net Income			use formula (show formula)

Perform a Verticle Analysis on Thornton Company for 2019:
Use formulas and Report as percentages, round percentages to one decimal place)
(the first 2 are done for you)
	2019
Sales	100.0%
Cost of goods sold	61.0%
Gross margin		(show formula)
Operating expenses		(show formula)
Interest expense		(show formula)
Total expenses		(show formula)
Income before taxes		(show formula)
Income tax expense		(show formula)
Net margin		(show formula)
Last year (2018) Thornton reported the following information:
Thornton Company
Income Statement
For the Year Ending 2018
Sales		$800,000	100.0%
Cost of Goods Sold		512,000	64.0%
Gross Profit (gross margin)		288,000	36.0%
Operating Expenses	175,000		21.9%
Interest Expense	16,000		2.0%
Total Expenses		191,000	23.9%
Income before taxes		97,000	12.1%
Income tax expense		56,000	7.0%
Net Income		$ 41,000	5.1%