The comparative condensed income statements of Marks Corporation are shown below. MARKS CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2017 2016 Net sales $620,000 $500,000 Cost of goods sold 450,000 400,000 Gross profit 170,000 100,000 Operating expenses 54,000 40,000 Net income $116,000 $60,000 Prepare a horizontal analysis of the income statement data for Marks Corporation using 2016 as a base. (Round percentages to 1 decimal place, e. g. 12.1%.) MARKS CORPORATION Condensed Income Statements For the Years Ended December 31 Increase or (Decrease) During 2016 2017 2016 Amount Percentage Net sales $620,000 $500,000 $ % Cost of goods sold 450,000 400,000 % Gross profit 170,000 100,000 % Operating expenses 54,000 40,000 % Net income $116,000 $60,000 $ % Prepare a vertical analysis of the income statement data for Marks Corporation in columnar form for both years. (Round percentages to 1 decimal place, e. g. 12.1%.) MARKS CORPORATION Condensed Income Statements For the Years Ended December 31 2017 2016 Amount Percentage Amount Percentage Net sales $620,000 % $500,000 % Cost of goods sold 450,000 % 400,000 % Gross profit 170,000 % 100,000 % Operating expenses 54,000 % 40,000 % Net income $116,000 % $60,000 %

Marks Corporation

1. Horizontal Analysis:

                                          2017                  2016          Increase       %

Net sales                       $620,000           $500,000    $120,000    24%

Cost of goods sold         450,000              400,000       50,000     12.5%  

Gross profit                      170,000               100,000       70,000     70%    

Operating expenses        54,000                 40,000        14,000      35%

Net income                    $116,000              $60,000        56,000     93%

2. Vertical Analysis:

                                          2017            %                  2016        %

Net sales                       $620,000      100%          $500,00   100%

Cost of goods sold         450,000        72.6%       400,000     80%

Gross profit                      170,000        27.4%        100,000     20%

Operating expenses        54,000           8.7%         40,000       8%

Net income                    $116,000          18.7%      $60,000       12%

Explanation:

Data and Calculations:

MARKS CORPORATION Comparative Condensed Income Statements For the Years Ended December 31

                                            2017                  2016          Increase     %

Net sales                       $620,000           $500,000    $120,000    24%

Cost of goods sold         450,000              400,000       50,000     12.5%  

Gross profit                      170,000               100,000       70,000     70%    

Operating expenses        54,000                 40,000        14,000      35%

Net income                    $116,000              $60,000        56,000     93%

For the horizontal analysis, the 2017 figure is compared to the 2016 figure.  The Percentage increase is the difference divided by the base year, 2016's figures, before being multiplied by 100.

For the vertical analysis, the base is the sales figure.  The relationship between the sales and other elements are established through ratio analysis.

answer; intensive use of a sales force and is relatively costly;

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported