Prepare a Vertical Analysis of the Income Statement Shown Below

question 76

Essay

Prepare a vertical analysis of the income statement shown below.(Round to two decimal places. )
$\begin{array}{c}\text {Trucker, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2017}\\\\\begin{array}{lr}\text { Net Sales } & \$ 7,000 \\\text { Cost of Goods Sold } & \underline{3,800} \\\text { Gross Profit } & 3,200\\\text { Operating Expenses: }\\\text { Selling Expenses } & 950 \\\text { Administrative Expenses } & \underline{670} \\\text { Total Operating Expenses } & \underline{1,620} \\\text { Operating Income } & 1,580 \\\text { Other Revenues and (Expenses): } &\\\text { Interest Revenue } & 0 \\\text { Interest Expense } & \underline{(750)} \\\text { Total Revenues and (Expenses) } & \underline{(750)} \\\text { Income Before Income Taxes } & 830 \\\text { Income Tax Expense } &\underline{150} \\\text { Net Income } & \underline{\$ 680}\end{array}\end{array}$

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Definitions:

Test-Market

A process used by companies to evaluate the viability of a new product or service in a limited geographic area before a wide-scale launch.

Duration

The length of time something lasts or continues.

Foreign Limited Liability Company

A limited liability company (LLC) that is registered in one state but conducts business in another state.

Jurisprudence

The study or philosophy of law that examines the theoretical and philosophical interpretations of laws and legal principles.