Mamas Steakhouse Condensed Income Statement & Statement of Retained Earnings For the period: January 1, 2012 to December 31, 2012
Income Statement	(Round to one decimal place)
Sales	$1,000,000
Cost of Sales	530,000
Gross Profit	470,000
Operating Expenses (excluding depreciation)	388,000
Depreciation	33,000
Operating Income	49,000
Interest	19,000
Income Before Income Taxes	30,000
Income Taxes (40%)	23,000
Net Profit	7,000

a) What is the purpose of completing a Vertical Analysis?

b) Based on the Cost of Sales%, what is your analysis of Mamas Steakhouse?