Problem 1: Create an income statement that finds the gross profit and net income for ABC Computers for the year ending August 31, 2007 if the company had net sales of $28,625; cost of goods sold of $13,247; and operating expenses of $2,752.
Problem 2: Complete a vertical analysis of the income statement in part two.
Problem 3: In 2006, ABC Computers had net sales of 24,525; cost of goods sold of $15,895; and operating expenses of $3,285. Prepare a comparative income statement with a vertical analysis of 2006 and 2007.