Vertical Analysis of Income Statement

Revenue and expense data for Rogan Technologies Co. are as follows:

	20Y8		20Y7
Sales	$680,000		$605,000
Cost of goods sold	374,000		278,300
Selling expenses	122,400		133,100
Administrative expenses	129,200		151,250
Income tax expense	27,200		18,150

a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as a positive number.

Rogan Technologies Co.
Comparative Income Statement
For the Years Ended December 31, 20Y8 and 20Y7
	20Y8 Amount	20Y8 Percent	20Y7 Amount	20Y7 Percent
	$	%	$	%
		%		%
Gross profit	$	%	$	%
	$	%	$	%
		%		%
Total operating expenses	$	%	$	%
	$	%	$	%
		%		%
Net income	$	%	$	%

b. Which of the following are true regarding the vertical analysis for Rogan?