Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company’s financial statements for the two most recent years.
Vertical Analysis Refer to the information for Kepler Company on the previous page. Required:
1. Express each item in the asset section of the balance sheet as a percentage of total assets for each year.
2. Express each item in the liabilities and equity section as a percentage of total liabilities and equity for each year.
3. Express each item in the income statement as a percentage of sales for each year.
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