Requirement 1:
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:
This analysis is otherwise called as common-size statement.
To prepare: A common-size income statement and
Requirement 2:
Company performance and Industry average:
To compare: The company’s profit percentage and financial position with the average for the industry.
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Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
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