Operating data for Spectre Ltd are presented here.

Required

(a) Prepare a schedule showing a vertical analysis for 2017 and 2016.

(b) Why is it helpful to prepare horizontal and vertical analysis when evaluating an entity?

Transcribed Image Text:

Sales Cost of sales Selling expenses Administrative expenses Income tax expense Profit 2017 $900 000 520 000 140 000 65 000 52 500 122500 2016 $870 000 460 000 93000 61 000 76 800 179 200