Perform a vertical analysis in relation to revenue for the items on the income statement only for each of the two companies

Bailey Ltd$.$

Income Statement

For the year ended December $31,2016$

Sales $*$ $$2,797,000$

Cost of Goods Sold $1,790,000$

Gross Margin $1,007,000$

Operating Expenses $770,000$

Depreciation Expense $37,000$

Operating Income $200,000$

Interest Expense $70,000$

Income before Income Tax $130,000$

Income Tax Expense $52,000$

Net Income$($Loss$)$ $$78,000$

$*$all Sales made on credit

$***$ A$/$R for $2015$ was $$230,000$

Equity for $2015$ was $$310,000$

total assets for $2015$ was $$1,050,000$

inventory for $201585,000$

dividend $201660,000$

Snoopy Ltd$.$

Balance Sheet

As of December $31,2016$

Cash $$27,000$

Accounts Receivable$($net$)***262,000$

Inventory $110,000$

Prepaid Expenses $7,000$

Plant and Equipment$($net$)704,000$

$$1,110,000$

Accounts Payable & Accrued Liabilities $$173,000$

Long$-$term Debt $310,000$

Common Shares$**200,000$

Retained Earnings $427,000$

Snoopy Ltd$.$

Income Statement

For the year ended December $31,2016$

Sales $*$ $$2,454,000$

Cost of Goods Sold $1,594,000$

Gross Margin $860,000$

Operating Expenses $632,000$

Depreciation Expense $31,000$

Operating Income $197,000$

Interest Expense $43,000$

Income before Income Tax $154,000$

Income Tax Expense $62,000$

Net Income $($Loss$)92,000$

$*$all Sales made on credit