Exercise 18-2

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Operating data for Navarro Corporation are presented below.

2015	2014
Net sales	$747,970	$601,350
Cost of goods sold	460,140	393,260
Selling expenses	121,740	68,350
Administrative expenses	63,150	53,670
Income tax expense	32,090	21,380
Net income	70,850	64,690

Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place, e.g. 48.5%.)

NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31
2015	2014
Amount	Percent	Amount	Percent
Net sales	$747,970	100 %	$601,350	100 %
Cost of goods sold	460,140	61.5 %	393,260	65.4 %
Gross profit	287,830	43 %	208,090	12 %
Selling expenses	121,740	16.3 %	68,350	11.4 %
Administrative expenses	63,150	8.4 %	53,670	8.9 %
Total operating expenses	184,890	67 %	122,020	90 %
Income before income taxes	102,940	88 %	86,070	34 %
Income taxes expense	32,090	4.3 %	21,380	3.6 %
Net income	$70,850	9.5 %	$64,690	10.8 %

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