Vertical Analysis of Income Statement

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

		20Y8		20Y7
Sales		$450,000		$362,500
Cost of goods sold		279,000		217,500
Selling expenses		58,500		58,000
Administrative expenses		31,500		32,625
Income tax expense		38,250		29,000

Question Content Area

a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. Round to one decimal place.

Tribal Technologies Co. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7

	20Y8 Amount	20Y8 Percent	20Y7 Amount	20Y7 Percent
Cost of goods soldGross profitIncome tax expenseSales
Cost of goods soldIncome tax expenseOperating incomeSales
Gross profit
Cost of goods soldIncome tax expenseSalesSelling expenses
Administrative expensesCost of goods soldIncome tax expenseOperating income
Total operating expenses
Gross profitIncome tax expenseOperating incomeSales
Cost of goods soldIncome tax expenseSalesTotal operating expenses
Net income