Operating data for Bramble Corp. are presented below. 2020 2019
Sales revenue $730,000 $650,000
Cost of goods sold 480,340 473,850
Selling expenses 105,850 84,500
Administrative expenses 50,370 52,000
Income tax expense 29,930 26,650
Net income 63,510 13,000
Prepare a schedule showing a vertical analysis for 2020 and 2019.
(Round percentages to 1 decimal place, e. g. 12.1%.)
BRAMBLE CORP. Condensed Income Statement For the Years Ended December 31 2020 2019 Amount Percent Amount Percent
Sales $730,000 % $650,000 %
Cost of goods sold 480,340 % 473,850 %
Gross profit 249,660 % 176,150 %
Selling expenses 105,850 % 84,500 %
Administrative expenses 50,370 % 52,000 %
Total operating expenses 156,220 % 136,500 %
Income before income taxes 93,440 % 39,650 %
Income tax expense 29,930 % 26,650 %
Net income $ 63,510 % $ 13,000 %

Explanation:

Vertical analysis of financial statement entails the expression of each line of the financial statement as a percentage of a base figure for analysis and evaluation purpose.

In this case , the sales revenue is used as the base figure

Vertical analysis of Bramble corp . Income statement for 2020 / 2019

Item                         2020          %          2019             %

Sales revenue       730,000     100       650,000      100

Cost of goods         480,340     65.8     473,850      72.9

Gross profit             249,660     34.2      176,150       27.1

Selling expenses    105,850      14.5       84,500       13.0

Admin Expenses      50,370        6.9       52,000        8

Operating Expenses 156,220     21.4     136,500       21

Income before tax      93,440      12.8      39,650      6.1

Income tax Expenses 29,930      4.1        26,650      4.1

Net Income                  63,510      8.7         13,000       2

answer; the nav calculated at the market close at 4: 00 pm new york time;