Use the following income statement from Color Copy to perform a vertical analysis with sales as the base:Color Copy, Inc.Income StatementFor the Year Ended September 30, 2011Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 10,228Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,751Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,477Operating expenses: Depreciation— buildings and equipment . . . . . . . …..\$100 Other selling and administrative . . . . . . . . . . . . . . . . . . . . . . . . 2,500Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600Income before interest and taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,877Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,527Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 1,377 View Solution:
Use the following income statement from Color Copy to perform