20182017 Analysis/Explaination Units 80.062.5 Sales 1,200100%1,000100% COGS 720500 ...
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Accounting
AnalysisExplaination Units Sales COGS Gross Profit Selling Expense Administrative Expense Operating Income Other IncomeExpense Net Income Required: Using vertical analysis, evaluate the results of operations in and Quantify the percentages of each line item to sales. Evaluate the drivers of net income, including gross profit, selling and administrative expenses, and other income. What is the overall percentage point change in profitability and what is the contribution positive or negative of each driver. Explain the effect of each driver on profitability and the possible scenarios of each based on the data above. Which are areas of concern? Which areas are positive? What additional questions would you have?
AnalysisExplaination
Units
Sales
COGS
Gross Profit
Selling Expense
Administrative Expense
Operating Income
Other IncomeExpense
Net Income
Required:
Using vertical analysis, evaluate the results of operations in and Quantify the percentages of each line item to sales.
Evaluate the drivers of net income, including gross profit, selling and administrative expenses, and other income. What is the
overall percentage point change in profitability and what is the contribution positive or negative of each driver. Explain the
effect of each driver on profitability and the possible scenarios of each based on the data above. Which are areas of concern?
Which areas are positive? What additional questions would you have?
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