Asked by Julianne Marie on Jul 09, 2024
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Using the following operating data for Complex Corporation prepare a schedule showing a vertical analysis for 2017. 20172016 Net sales $360,000$320,000 Cost of goods sold 210,000180,000 Operating expenses 112,000100,000 Net income 38,00040,000\begin{array}{lrr}&2017&2016\\\text { Net sales } & \$ 360,000 & \$ 320,000 \\\text { Cost of goods sold } & 210,000 & 180,000 \\\text { Operating expenses } & 112,000 & 100,000 \\\text { Net income } & 38,000 & 40,000\end{array} Net sales Cost of goods sold Operating expenses Net income 2017$360,000210,000112,00038,0002016$320,000180,000100,00040,000
Vertical Analysis
A financial analysis method that lists each line item in a single period financial statement as a percentage of a base line figure.
Operating Expenses
The day-to-day costs involved in running a business, excluding the cost of goods sold.
Net Sales
Sales revenue minus returns, allowances, and discounts.
- Perceive the importance and approaches used for comparative financial statement analysis, incorporating horizontal, vertical, and trend analyses.
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Learning Objectives
- Perceive the importance and approaches used for comparative financial statement analysis, incorporating horizontal, vertical, and trend analyses.
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