Question: Vertical analysis Using the income statement information for Einsworth Corporation that follows, prepare a vertical analysis of the income statement for Einsworth Corporation. Einsworth Corporation
Vertical analysis
Using the income statement information for Einsworth Corporation that follows, prepare a vertical analysis of the income statement for Einsworth Corporation.
| Einsworth Corporation |
| Income Statement |
| 1 |
| Amount | Percentage |
| 2 | Sales | $850,000.00 | % |
| 3 | Cost of goods sold | 561,000.00 | % |
| 4 | Gross profit | $289,000.00 | % |
2)
Accounts Receivable Analysis
A company reports the following:
| Sales | $423,400 |
| Average accounts receivable (net) | 42,340 |
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
| a. Accounts receivable turnover | |
| b. Number of days' sales in receivables | -------days |
3)
Inventory Analysis
A company reports the following:
| Cost of goods sold | $688,755 |
| Average inventory | 81,030 |
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
| a. Inventory turnover | |
| b. Number of days' sales in inventory | ------- days |
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