Prepare a Vertical Analysis of the Income Statement Shown Below $$\begin{array} { l l } \text { Net Sales } & \$ 7,000 \\\text { Cost of Goods Sold } & 3 , 8 0 0 \\\text { Gros Profit } & 3 , 2 0 0 \end{array}$$

question 148

Essay

Prepare a vertical analysis of the income statement shown below. (Round to two decimal places.)
Buckner, Inc.
Income Statement
For the Year Ended December 31, 2019 $$\begin{array} { l l } \text { Net Sales } & \$ 7,000 \\\text { Cost of Goods Sold } & 3 , 8 0 0 \\\text { Gros Profit } & 3 , 2 0 0 \end{array}$$ Operating Expenses:
$$\begin{array} { l l } \text { Selling Expenses } &&950 \\\text { Administrative Expenses } & \underline { 670 } \\\text { Total Operating Expenses } & \underline { 1,620 } \\\text { Operating Income } & 1,580\end{array}$$ Other Income and (Expenses):
$\begin{array}{lll}\text { Interest Expense } & \underline{750)} \\\text { Total Other Income and (Expenses) } & && \underline{750)}\\\text { Income Before Income Taxes } & &830 \\\text { Income Tax Expense } & \underline{150} & \\\text { Net Income } & \underline{\underline{\$ 680}} &\end{array}$

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Definitions:

Revenue

Revenue is the total amount of money that a company receives from its activities, mainly from sales of products or services, before any expenses are subtracted.

Original Cost

The purchase price of an asset or service, including installation fees, transportation charges, and any other expenses necessary to make the asset operational.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during an accounting period.