# Question: Use the following income statement from Color Copy to perform

Use the following income statement from Color Copy to perform a vertical analysis with sales as the base:
Color Copy, Inc.
Income Statement
For the Year Ended September 30, 2011

Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 10,228
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,751
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,477
Operating expenses:
Depreciationâ€” buildings and equipment . . . . . . . .....\$100
Other selling and administrative . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600
Income before interest and taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,877
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,527
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 1,377

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