Problem $3$: Tuscan Corp.

Use the following information to answer Parts A and $B$ for Tuscan Corp

Comparative income statements for Tuscan Corp. for the years ended December $31,2025$ and $2024$ are shown below:

$\backslash$table$[[,2025,2024],[$Sales$,$$$872,000,$$ $680,000],[$Cost of Goods Sold,$460,000,330\mathrm{.}000],[$Gross Profit,$412,000,350,000],[$Selling Expenses,$124,000,102,000],[$General Expenses,$140,000,122,000],[$Profit$,$$ $148,000,$$ $126,000]]$

Required:

Part A: Using vertical analysis, prepare common$-$size comparative income statements for $2025$ and $2024.$

Part B: Is profitability improving or deteriorating based on the verticalRequired:

Part A: Using vertical analysis, prepare common$-$size comparative income statements for $2025$ and $2024.$

Part B: Is profitability improving or deteriorating based on the vertical analysis? Briefly explain.

Notes:

Round percentages to one decimal place

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