Comparative data, in thousands, is given below for the Danika Company for the years' 2020...
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Accounting
Comparative data, in thousands, is given below for the Danika Company for the years' 2020 and 2019. Required: 1. Using the table below, complete a Vertical Analysis to determine the changes in net income. Round answers to 1 decimal place. (7 marks) 2. Despite sales having decreased in 2020 compared to 2019, net income is higher in 2020 compared to 2019. Provide two trends that you see that are contributing to this increase in net income. (2 marks) Part 1: 2020 Amount Percentage $4,350 % 2019 Amount Percentage $4,500 % Sales 2,450 % 2,500 % Cost of goods sold Gross profit Operating expenses $1,900 % $2,000 % 1,150 % 1,250 % Income before income tax $750 % $750 % Income tax expense 115 % 125 % $635 Net income % $625 % Part 2
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