Question

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


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  • CreatedSeptember 01, 2014
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