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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 69
Vertical analysis of income statement
For 20Y2, Fielder industries Inc. initiated a sales promotion compaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement:
Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. (Round percentages to one decimal place.)
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).
For 20Y2, Fielder industries Inc. initiated a sales promotion compaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement:
Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. (Round percentages to one decimal place.)
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).
Explanation
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Vertical Analysis of income statement
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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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