Use the following income statement from Designers Discount, Inc., to perform a vertical analysis with sales as the base:

Designers Discount,

Inc. Income Statement

For the Year Ended December 31, 2010

Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,374

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,985

Gross profit on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,389

Operating expenses:

Depreciation— buildings and equipment . . . . . $ 265

Other selling and administrative . . . . . . . . . . . . 3,750

Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,015

Income before interest and taxes . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,374

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254

Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,120

Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,236

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,884