Make a schedule showing a vertical analysis

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Question - Financial information for Ridge Ltd is as follows.

 

2016

2015

Sales

$1,500,00

$1,350,000

Cost of sales

745,000

738,000

Selling expenses

123,000

105,000

Administrative expenses

92,000

81,000

Income tax expense

162,000

127,800

Profit

378000

298,200

Required -

(a) Make a schedule showing a vertical analysis for 2016 and 2015. Show workings.

(b) Write a brief report outlining the results of your analysis for a potential investor and advise if the investor should invest in Ridge Ltd.

Reference no: EM132883324

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