The following income statement was prepared by Case Company for Year 2:Sales$ 100,000Cost of goods sold56,500Gross margin43,500Selling and administrative expense26,000Interest expense5,000Total expenses31,000Income before taxes12,500Income tax expense4,000Net income$ 8,500Required:Perform vertical analysis for Case Company's Year 2 income statement.
What will be an ideal response?
| Sales | 100% |
| Cost of goods sold | 56.5% |
| Gross margin | 43.5% |
| Selling and administrative expense | 26.0% |
| Interest expense | 5.0% |
| Total expenses | 31.0% |
| Income before taxes | 12.5% |
| Income tax expense | 4.0% |
| Net income | 8.5% |
Business
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