Perform a verticle analysis with sale as the base


Use the following income statement from Prism orinting to perform a verticle analysis with sale as the base.

Income Statement

For the year ended September 30, 2011

Sales revenue                            $9,500
Cost of goods sold                       2,780
Gross profit                                 6,720
Operating expense                         $0
Deprec. buildings&equip             250.00
Other selling&administrative         1,000
Total expenses                           1,250
Income before interest&taxes      5,470
Interest expense                          750
Interest before taxes                  4,720
Income taxes                               300
Net income                                 4,420

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Accounting Basics: Perform a verticle analysis with sale as the base
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