Question: The comparative income statement for Nupack Ltd. for the two most recent years is shown below. Nupack Ltd. Comparative Income Statement 2023 2022 Sales $146,000

The comparative income statement for Nupack Ltd. for the two most recent years is shown below. Nupack Ltd. Comparative Income Statement 2023 2022

Sales $146,000 $115,000

Cost of goods sold 68,000 48,000

Gross margin 78,000 67,000

Operating expenses 31,000 25,000

Net operating income 47,000 42,000

Interest expense 28,000 25,000

Net income before taxes 19,000 17,000

Income taxes (30%) 5,700 5,100

Net income $13,300 $11,900

Required: (a) Perform a vertical analysis of income statement for 2023 and 2022.

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