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I need to prepare a compartive income statement for 2 yrs in vertical form. HOw do i calculate the percentage?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Question

I need to prepare a compartive income statement for 2 yrs in vertical form. HOw do i calculate the percentage?

Expert Solution

Step 1

Vertical analysis: The comparison of an item of a financial statement against the total amount of the same financial statement, to determine the relation between the two items, is referred to as vertical analysis.

Here i assuming two years income statement data to calculate percentage.

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