Answer:
Explanation:
Vertical analysis of financial statement entails the expression of each line of the financial statement as a percentage of a base figure for analysis and evaluation purpose.
In this case , the sales revenue is used as the base figure
Vertical analysis of Bramble corp . Income statement for 2020 / 2019
Item 2020 % 2019 %
Sales revenue 730,000 100 650,000 100
Cost of goods 480,340 65.8 473,850 72.9
Gross profit 249,660 34.2 176,150 27.1
Selling expenses 105,850 14.5 84,500 13.0
Admin Expenses 50,370 6.9 52,000 8
Operating Expenses 156,220 21.4 136,500 21
Income before tax 93,440 12.8 39,650 6.1
Income tax Expenses 29,930 4.1 26,650 4.1
Net Income 63,510 8.7 13,000 2
