Vertical analysis. (LO 2)

Use the statement of income for Wendy's to perform a vertical analysis for each item reported for 2005 and 2004 using sales and other operating revenues as the base. What does your analysis tell you about the operations of Wendy's for the years reported?

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(Dollars in thousands) Assets Current assets Wendy's International, Inc. and Subsidiaries- Consolidated Balance Sheets January 1, 2006 and January 2, 2005 2005 2004 Cash and cash equivalents Accounts receivable, net 8 393,241 138,909 $ 176,749 127,158 Notes receivable, net 11,746 11,626 Deferred income taxes 29,043 27,280 Inventories and other 62,868 56,010 Advertising fund restricted assets 53,806 60,021 Assets held for disposition 66,803 0 Total current assets. 756,566 458,844 Property and equipment, net 2,325,888 2,349,820 Notes receivable, net 14,796 12,652 Goodwill 128,808 166,998. Deferred income taxes 6,623 6,772 Intangible assets, net 41,757 41,787 Other assets... 165,880 160,671 Total assets. $3,440,318 $3,197,544 Liabilities and Shareholder's Equity