In 2010, Earthscope Company decided to sell its satellite sales division, even though the division had been profitable during the year. During 2010, the satellite division earned $54,000 and the taxes on that income were $12,500. The division was sold for a gain of $750,000, and the taxes $36,700. How would these amounts be reported on the income statement for the year ended December 31, 2010?
Bessie’s Quilting Company reported the following amounts on its balance sheet at December 31, 2010:
Accounts receivable, net 40,000
Equipment, net 120,000
Total assets $200,000
Perform a vertical analysis of the assets of Bessie’s Quilting Company. Use total assets as the base. What information does the analysis provide?