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?

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