Sanchez Company reported the following operating results for two consecutive years.
Vertical Analysis
Sanchez Company reported the following operating results for two consecutive years.
Sales $500,000
Cost of Goods Sold $320,000
Gross Margin $180,000
Operating Expenses $100,000
Income before Taxes $80,000
Income taxes $24,000
Net Income $56,000
2005 Amount % of Sales
Sales $480,000
Cost of Goods Sold $307,000
Gross Margin $173,000
Operating Expenses $120,000
Income before Taxes $53,000
Income Taxes $16,000
Net Income $37,000
Express each income statement component for each of the 2 years as a % of sales.
