Question

Exercise 13-04 Operating data for Sheffield Corp. are presented below. 2022 2021 Sales revenue $839,100 $649,000 Cost of goods sold 522,400 410,700 Selling expenses 121,700 76,300 Administrative expenses 76,200 54,000 Income tax expense 34,200 24,400 Net income 84,600 83,600 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.) SHEFFIELD CORP. Condensed Income Statement choose the accouning period For the Month Ended December 31December 31For the Years Ended December 31 2022 2021 Amount Percent Amount Percent Sales $839,100 enter percentages % $649,000 enter percentages % Cost of goods sold 522,400 enter percentages % 410,700 enter percentages % Gross profit 316,700 enter percentages % 238,300 enter percentages % Selling expenses 121,700 enter percentages % 76,300 enter percentages % Administrative expenses 76,200 enter percentages % 54,000 enter percentages % Total operating expenses 197,900 enter percentages % 130,300 enter percentages % Income before income taxes 118,800 enter percentages % 108,000 enter percentages % Income tax expense 34,200 enter percentages % 24,400 enter percentages % Net income $ 84,600 enter percentages % $ 83,600 enter percentages

Answer 1

Ans.	SHEFFIELD CORP.
	Condensed Income Statement
	For the Years Ended December 31, 2022 and 2021
		2022	2021
		Amount	Percent (%)	Amount	Percent (%)
	Sales	$839,100	100.0%	$649,000	100.0%
	Cost of goods sold	$522,400	62.3%	$410,700	63.3%
	Gross profit	$316,700	37.7%	$238,300	36.7%
	Selling expenses	$121,700	14.5%	$76,300	11.8%
	General and Administrative expenses	$76,200	9.1%	$54,000	8.3%
	Total operating expenses	$197,900	23.6%	$130,300	20.1%
	Income before income taxes	$118,800	14.2%	$108,000	16.6%
	Income tax expense	$34,200	4.1%	$24,400	3.8%
	Net income	$84,600	10.1%	$83,600	12.9%
	Amount in percentage for 2022 =   Particular amount of 2022 / Net sales * 100
	Amount in percentage for 2021 =   Particular amount of 2021 / Net sales * 100