Question: Express the following income statement information, using vertical analysis (common-size percentages) and in trend percentages using 2001 as the base year. Common-Size Trend Percentages Percentages
Express the following income statement information, using vertical analysis (common-size percentages) and in trend percentages using 2001 as the base year.
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| Common-Size | Trend |
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| Percentages | Percentages |
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| 2001 | 2002 | 2001 | 2002 | 2001 | 2002 | ||||||||
| Sales | $230,000 | $270,000 | ____ | ____ | ____ | ____ | ||||||||
| Cost of goods sold | 120,000 | 145,000 | ____ | ____ | ____ | ____ | ||||||||
| Gross profit | $110,000 | $125,000 | ____ | ____ | ____ | ____ | ||||||||
B. Evaluate the situation shown as favorable or unfavorable change from 2006 to 2007.
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