Operating data for Sheffield Corp. are presented below. 2020 2019
Sales revenue $720,000 $600,000
Cost of goods sold 501,120 424,200
Selling expenses 111,600 75,000
Administrative expenses 59,040 43,800
Income tax expense 28,800 24,600
Net income 19,440 32,400

Required:
Prepare a schedule showing a vertical analysis for 2020 and 2019.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?