Vertical analysisRivera Company reported the following operating results for two consecuti

Vertical analysis

Rivera Company reported the following operating results for two consecutive years.

 

2005

Amount

Percent of Sales

Sales

$600,000

 

Cost of Goods Sold

400,000

 

Gross Margin on Sales

200,000

 

Operating Expenses

130,000

 

Income before Taxes

70,000

 

Income Taxes

30,000

 

Net Income

$ 40,000

 

2006

Amount

Percent of Sales

Sales

$580,000

 

Cost of Goods Sold

377,000

 

Gross Margin on Sales

203,000

 

Operating Expenses

150,000

 

Income before Taxes

53,000

 

Income Taxes

23,000

 

Net Income

$ 30,000

 

Required

Express each income statement component for each of the two years as a percent of sales.