Exercise 14-2 Operating data for Navarro Corporation are presented below. Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2017 $745,000 460,000 115,000 55,000 28,000 87,000 2016 $595,000 385,000 67,000 49,000 19,000 75,000 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.3%.) Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.3%.) NAVARRO CORPORATION Condensed Income Statements 2017 Percent 2016 Percent Amount Amount Net sales $745,000 $595,000 Cost of goods sold 460,000 385,000 Gross profit 285,000 210,000 Selling expenses 115,000 67,000 Administrative expenses 55,000 49,000 Total operating expenses 170,000 116,000 Income before income taxes 115,000 94,000 Income tax expense 28,000 19,000 Net income $87,000 $75,000