Using the Following Information from an Annual Report,prepare a Vertical

question 71

Essay

Using the following information from an annual report,prepare a vertical analysis of the consolidated statement of earnings for the fiscal year ended June 30,20xx.(Round percentage answers to one decimal place.)
$\begin{array}{lr}&\text { (In millions) }\\ \text { Net sales } & \$ 11,862 \\\text { Cost of sales } & \underline{ 8,321}\\\text {Gross margin}& \underline{\$3,541}\\\text {Selling general, and administrative expenses}&\$2,743\\\text {Depreciation amortization and asset write-offs}& \underline{278}\\ \text {Total operating expenses}& \underline{\$3,201}\\\text {Income from operations}&\$520\\\text {Interest expense}&(91)\\ \text { Interest and other income } & \underline{11} \\ \text { Earnings before income taxes } & \$ 440 \\\text { Income taxes } & \underline{ 161} \\\text { Nearnings } & \underline{ \$ 279}\end{array}$