Prepare vertical analysisfollowing is the income statement

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Reference no: EM13356123

Prepare vertical analysis.

Following is the income statement for Commerce Corporation for the year ended December 31, 20X7:

Commerce Corporation Income Statement For the Year Ended December 31, 20X7
Net sales	$661,000
Expenses:
Cost of goods sold	268,500
Selling expenses	45,000
General expenses	49,300
Interest expense	35,000
Income tax expense	30,000
Total expenses	427,800
Net income	$233,200

a) Prepare a vertical analysis of the income statement showing appropriate percentages for each item listed above.

b) What additional information would you need to determine whether these percentages are good or bad?

Reference no: EM13356123

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