Case Study: Financial Analysis

	B	C	D	E	F	G
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2	Vertical Analysis
3	Legacy Clothing Income Statement For the period ending December 31, 2022
4			2021		2022
5			Amount	Percent	Amount	Percent
6	Sales		1,000,000	108.1%	1,100,000	107.3%
7		Sales Returns and Allowances	50,000	5.4%	55,000	5.4%
8		Sales Discounts	25,000	2.7%	20,000	2.0%
9	Net Sales		925,000	100.0%	1,025,000	100.0%
10		Cost of Goods Sold	450,000	48.6%	475,000	46.3%
11	Gross Profit		475,000	51.4%	550,000	53.7%
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13		Salaries Expense	150,000	16.2%	175,000	17.1%
14		Advertising Expense	30,000	3.2%	32,000	3.1%
15		Rent Expense	10,000	1.1%	11,000	1.1%
16		Insurance Expense	2,500	0.3%	2,500	0.2%
17		Supplies Expense	5,000	0.5%	5,000	0.5%
18		Depreciation Expense - Buildings	15,000	1.6%	15,000	1.5%
19	Total Operating Expenses		212,500	23.0%	240,500	23.5%
20	Income from Operations		262,500	28.4%	309,500	30.2%
21	Other Revenue (Expense)
22		Interest Expense	5,000	0.5%	5,500	0.5%
23	Net Income		257,500	27.8%	304,000	29.7%
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