Prepare a vertical analysis of the income statement for Gateway. Round to one decimal place. 1 answer below »

The following income statement data (in thousands) for Dell Computer Corporation and Gateway Inc. were taken from their recent annual reports:

 

Dell

Gateway

Net sales

$31,888,000

$6,079,524

Cost of goods sold

25,445,000

5,241,332

Gross profit

$ 6,443,000

$838,192

Operating expenses

3,780,000

2,022,122

Operating income (loss)

$ 2,663,000

$(1,183,930)

1. Prepare a vertical analysis of the income statement for Dell. Round to one decimal place.

2. Prepare a vertical analysis of the income statement for Gateway. Round to one decimal place.

3. Based upon (1) and (2), how does Dell compare to Gateway?

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