Unit 11
Accounting and Finance Foundations Unit 11: Financial Analysis 873Financial Analysis
Chapter 26
Student Assignment
Lesson 26.1 Culminating Project A
You have been hired as a staff accountant for Newton Park. Your first assignment is to prepare a vertical
analysis of the income statement.Newton Park
Income Statement
For Year Ended December 31, 20XXRevenues
Theme Park Admissions Revenue 320,000
Concessions & Gift Shop Revenue 175,000Total Revenue $495,000Expenses
Cost of Goods Sold, Gift Shop & Concessions
Beginning Inventory, January 1 17,000
Purchases 39,000
Goods Available for Sale 56,000
Ending Inventory, December 31 13,000
Cost of Goods Sold, Gift Shop & Concessions 43,000
Gross Profit, Gift Shop & Concessions 132,000Operating Expenses
Salaries Expense 70,000
Utility Expense 60,000
Advertising Expense 56,000
Depreciation Expense 52,000
Insurance Expense 40,000
Administrative Expenses 35,000
Total Operating Expenses 313,000Other Expenses
Interest Expense 15,000
Income Tax Expense 8,750
Total Other Expenses 23,750Net Income $26,250