Vertical analysis

Using the income statement information for Einsworth Corporation that follows, prepare a vertical analysis of the income statement for Einsworth Corporation.

Einsworth Corporation

Income Statement

1		Amount	Percentage
2	Sales	$850,000.00	%
3	Cost of goods sold	561,000.00	%
4	Gross profit	$289,000.00	%

2)

Accounts Receivable Analysis

A company reports the following:

Sales	$423,400
Average accounts receivable (net)	42,340

Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.

a. Accounts receivable turnover
b. Number of days' sales in receivables	-------days

3)

Inventory Analysis

A company reports the following:

Cost of goods sold	$688,755
Average inventory	81,030

Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.

a. Inventory turnover
b. Number of days' sales in inventory	------- days