1. Operating data for Martinez Corp. are presented as follows. 2022 2021 Sales revenue $842,600 $639,100...

1. Operating data for Martinez Corp. are presented as follows.

	2022	2021
Sales revenue	$842,600	$639,100
Cost of goods sold	530,838	409,024
Selling expenses	122,177	76,692
Administrative expenses	71,621	51,128
Income tax expense	37,917	25,564
Net income	80,047	76,692

Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)

2. Here is financial information for Splish Brothers Inc.

	December 31, 2022	December 31, 2021
Current assets	$109,852	$ 94,700
Plant assets (net)	404,643	353,800
Current liabilities	103,544	68,800
Long-term liabilities	125,951	94,700
Common stock, $1 par	134,216	118,800
Retained earnings	150,784	166,200

Prepare a schedule showing a horizontal analysis for 2022, using 2021 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Solutions

Expert Solution

Vertical analysis

	2022	Percent	2021	Percent
Sales revenue	$842,600	100%	$639,100	100%
Cost of goods sold	530,838	63%	409,024	64%
Selling expenses	122,177	14.5%	76,692	12%
Administrative expenses	71,621	8.5%	51,128	8%
Income tax expense	37,917	4.5%	25,564	4%
Net income	80,047	9.5%	76,692	12%

	December 31, 2022	December 31, 2021	Amount	%
Current assets	$109,852	$ 94,700	15152	16%
Plant assets (net)	404,643	353,800	50843	14.4%
Current liabilities	103,544	68,800	34744	50.5%
Long-term liabilities	125,951	94,700	31251	33%
Common stock, $1 par	134,216	118,800	15416	13.0%
Retained earnings	150,784	166,200	-15416	-9.3%

ekkarill92 answered 1 year ago

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