The Following Income Statement Was Prepared by Case Company for Year

Essay

The following income statement was prepared by Case Company for Year 2:
$\begin{array}{lr}\text { Sales } & \$ 100,000 \\\text { Cost of goods sold } & \underline{56,500 }\\\text { Gross margin } & 43,500 \\\text { Selling and administrative expense } & 26,000 \\\text { Interest expense } & \underline{ 5,000 }\\\text { Total expenses } & \underline{ 31,000} \\\text { Income before taxes } & \underline{12,500} \\\text { Income tax expense } & \underline{4,000} \\\text { Net income } & \underline{\$ 8,500}\end{array}$
Required:
Perform vertical analysis for Case Company's Year 2 income statement.