Use the following income statement from Prism Printing to perform a vertical ana

Question

Use the following income statement from Prism Printing to perform a vertical analysis with sales as the base. What would the vertical Analysis look like?

Prism Printing income statement
For the year ended September 30, 2011

Sales revenue 9,500
Cost of goods sold 2,780
Gross profit 6,720
Operating expense
Depreciation / Building and equipment 250
Other selling and Administration 1,000
Total expenses 1,250
Income before interest and taxes 5,470
Interest expense 750
Interest before taxes 4,720
Income tax 300
Net income 4,420

Explanation / Answer

go here to view an example http://highered.mcgraw-hill.com/sites/0073029920/student_view0/ebook/chapter23/chbody45/vertical_analysis_of_financial_statements.html

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