Conduct a vertical analysis (common-size financial statements). Comment on the components of the financial statements by year and its trend for the last three years.(Note: please see second picture as example for vertical analysis. The first picture is the given.) Village Shipping Inc.Income Statement Vertical AnalysisFor the years ending December 31, 2014and December 31, 201520142015SalesCost of goods soldGross profit500,000269,000231,000100.00%53.80%46.20%475,000265,000210,000100.00%55.79%44.21%WagesRepairsRentTaxesOffice expensesTotal expensesNet Income163,0004,15012,00017,93058732.60%0.83%2.40%3.59%0.12%39.53%6.67%154,0005,80013,00016,9401,023190,76319,23732.42%1.22%2.74%3.57%0.22%40.16%4.05%197,66733,333 P and P Manufacturing CompanyComparative Statements of Financial PositionAs of 31 December 2018, 2017, and 2016In Peso2018P581, 970.00686,725.00450,470.00225,000.00845,000.00854,500.00P3.643,665.00P184,620.00350,000.003,109,045.00P3.643.665.0020162017P290,000.00340,000.00270,000.00225,000.00895,000.00825,000.00P2,845,000.00P165,000.00550,000.002,130,000.00P2,845,000.00AccountP215,000.00130,000.000.00CashAccounts ReceivableInventories350,000.00945,000.00290,000.00P1,930,000.00P200,000.00750,000.00980,000.00P1,930,000.00LandBuildings, NetEquipment, NetTotal AssetsAccounts PayableLong-term DebtCapital StockLiabilitiesTotalandShareholders' Equity

In the vertical analysis the Percentage of base = (Amount of individual item/Amount of base item) ×…

Conduct a vertical analysis (common-size financial statements). Comment on the components of the financial statements by year and its trend for the last three years. (Note: please see second picture as example for vertical analysis. The first picture is the given.)

Conduct a vertical analysis (common-size financial statements). Comment on the components of the financial statements by year and its trend for the last three years. (Note: please see second picture as example for vertical analysis. The first picture is the given.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 54CE

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