FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
FINANCIAL ACCT.:TOOLS...(LL)-W/ACCESS
8th Edition
ISBN: 9781119250913
Author: Kimmel
Publisher: WILEY
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Chapter 13, Problem 13.8BE
To determine

Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage:

Formula:

Vertical analysis percentage =(Specific itemBaseamount)×100

This analysis is otherwise called as common-size statement.

To prepare: Vertical analysis for 2017, 2016, and 2015.

Given info: Sales, cost of goods sold, and expenses for the years 2018, 2017, and 2016.

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