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10 July, 09:03

The following information is taken from the records of Erie Corp. (in thousands) for the year ended on December 31: 2019 2018 Sales $1,397 $1,122 Cost of Goods Sold 935 814 Selling Expenses 154 121 General Expenses 88 77 Other Revenue 4 7 Interest Expense 2 9 Income Taxes 134 66 After preparing a vertical analysis of this income statement data, what were the favorable and unfavoralbe changes?

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  1. 10 July, 11:35
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    Favourable Changes:

    Sales

    Gross Profit

    Operating Income

    Interest Expense

    Net Income

    Unfavourable Changes:

    Cost Of Sales

    Selling Expenses

    General Expenses

    Other Revenue

    Income Taxes

    Explanation:

    Observe Movement from 2018 results to 2019 results

    Erie Corp

    Vertical Analysis of Income Statement

    2019 2018

    Sales 1,397 1,122

    Less Cost Of Sales 935 814

    Gross Profit 462 308

    Less Operating Expenses

    Selling Expenses 154 121

    General Expenses 88 77

    Operating Income 220 110

    Less Non - Operating Expenses

    Other Revenue 4 7

    Interest Expense 2 9

    Income Taxes 134 66

    Net Income 88 42
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