In: Accounting
ABC Company reports the following comparative income statement:
2017
Revenue $100,000
COGS 42,000
Gross Profit 58,000
SGA Expenses 25,000
Income before tax 33,000
Income tax expense. 11,000
Net Income 22,000
2016
Revenue $70,000
COGS 25,000
Gross Profit 45,000
SGA Expenses 28,000
Income before tax 17,000
Income tax expense. 6,000
Net Income 11,000
Prepare a vertical and horizontal analysis for ABC Company and then calculate the profit margin for ABC Company
2017 |
2016 |
Increase (Decrease) |
% Increase (Decrease) |
|
Revenue |
$ 100,000.00 |
$ 70,000.00 |
$ 30,000.00 |
42.86% |
COGS |
$ 42,000.00 |
$ 25,000.00 |
$ 17,000.00 |
68.00% |
Gross Profit |
$ 58,000.00 |
$ 45,000.00 |
$ 13,000.00 |
28.89% |
SGA Expenses |
$ 25,000.00 |
$ 28,000.00 |
$ (3,000.00) |
-10.71% |
Income before taxes |
$ 33,000.00 |
$ 17,000.00 |
$ 16,000.00 |
94.12% |
Income Tax Expense |
$ 11,000.00 |
$ 6,000.00 |
$ 5,000.00 |
83.33% |
Net Income |
$ 22,000.00 |
$ 11,000.00 |
$ 11,000.00 |
100.00% |
2017 |
2016 |
|||
Revenue |
$ 100,000.00 |
100.00% |
$ 70,000.00 |
100.00% |
COGS |
$ 42,000.00 |
42.00% |
$ 25,000.00 |
35.71% |
Gross Profit |
$ 58,000.00 |
58.00% |
$ 45,000.00 |
64.29% |
SGA Expenses |
$ 25,000.00 |
25.00% |
$ 28,000.00 |
40.00% |
Income before taxes |
$ 33,000.00 |
33.00% |
$ 17,000.00 |
24.29% |
Income Tax Expense |
$ 11,000.00 |
11.00% |
$ 6,000.00 |
8.57% |
Net Income |
$ 22,000.00 |
22.00% |
$ 11,000.00 |
15.71% |
2017 |
2016 |
|
Net Income |
$ 22,000.00 |
$ 11,000.00 |
Revenues |
$ 100,000.00 |
$ 70,000.00 |
Profit Margin % |
22.00% |
15.71% |