please doctor i need full answer for my question please full answer i need

there is an example for income statment from my teacher has solved by vertical and horizontal and doctor send me exercise need solution by this way

i sent in my question income statment my teacher solve it by using vertical and horizontal my doctor dont use balance sheet in solution she use income statment inly you can revise my question i attach an example my dictor solve it using income statment only

i sent in my question income statment my teacher solve it by using vertical and horizontal my doctor dont use balance sheet in solution she use income statment inly you can revise my question i attach an example my dictor solve it using income statment only

Q2; STATEMENTS OF EARNINGS For the three fiscal year ended December 31, 2006 Kelly Services, Inc. and Subsidiaries 2006 2005 20041) (In thousands of dollars except per share item Revenue from service 55,605,752 $5,251712 Cost of services 54,932.850 4.680,538 4,402.615 4.143.11 Gross profit 925,214 49,094 789239 Selling general and administrative expenses $46,198 797.813 756,128 Earnings from operations 79,016 51,281 Other income (expensel, et 31,111 1.471 (187) Earnings from continuing operations before taxes 80,487 51,094 30.250 Income taxes 23,112 14,813 10,750 Earnings from continuing operations 57,375 36.281 19.470 Earnings from discontinued operations, net of tax 6,116 2,982 1,741 Net carning 63.491 $ $ 21211 Basic earnings per share Earnings from continuing operations $ 1.59 5 1.02 5 55 Earnings from discontinued operation .17 05 Net caring $ 1.76 $ 1.10 Diluted earnings per share Earnings from continuing operations $ 1.55 5 1.01 55 Earnings from discontinued operation 17 OK $ 1.75 Net caming 5 109 5 60 5 4 5 40 Dividends per share 5 40 berage share outstanding (thousands 35,115 Bask 35,999 35.667 35, 35461 Diluted n) Fiscal year included 53 weeks a-Using the balance sheets, prepare a vertical common-size analysis for 2007 and 2006. Use total assets as a base. b. Using the balance sheets, prepare a horizontal common-size analysis for 2007 and 2006. Use 2006 as the base. c. Comment on significant trends that appear in (a) and (b). Vertical Analysis Melcher Company Income Statement For the Years Ended December 31 2005 2004 2003 $ 100,000 100.0% $95,000 100.0% $91.000 100.0% 65.000 65.0% 60,800 64.0% 56.420 62.0% 35,000 35.0% 34,200 36.0% 34,580 38.0% Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expense General expense Total operating expense Operating Income before taxes Taxes related to operations Net Income 14.000 16.000 30.000 5,000 1,500 $ 3.500 14.0% 16.0% 30.0% 5.0% 1.5% 3.5% 11,400 15,200 26.600 7,600 2,280 $ 5,320 12.0% 16.0% 28.0% 8.0% 2.4% 5.6% 10,000 13,650 23.650 10,930 3.279 $ 7,651 11.0% 15.0% 26.0% 12.0% 3.6% 8.4% Each financial statement element is presented as a percentage of a designated base. Horizontal Analysis Melcher Company Income Statement For the Years Ended December 31 2005 2004 2003 $ 100 000 $ 96 000 $91 000 65 000 60 800 56 420 35 000 34 200 34 580 2005 109.9% 115.2% 101,2% 2004 104,4% 107,8% 98.9% 2003 100,0% 100,0% 100.0% Sales revenue Cost of goods sold Gross profit Operating expenses Selling expense General expense Total operating expense Operating Income before taxes Taxes related to operations Net Income 14 000 16 000 30 000 5 000 1 500 $ 3500 11 400 15 200 26 600 7 600 2 280 $ 5320 10 000 13 650 23 650 10 930 3279 $ 7651 140.0% 117.2% 126.8% 45.7% 45.7% 45.7% 114,0% 111,4% 112.5% 69.5% 69.5% 69.5% 100,0% 100,0% 100,0% 100,0% 100.0% 100.0% Each financial statement element is presented as a percentage of a base amount from a selected year. Q2; STATEMENTS OF EARNINGS For the three fiscal year ended December 31, 2006 Kelly Services, Inc. and Subsidiaries 2006 2005 20041) (In thousands of dollars except per share item Revenue from service 55,605,752 $5,251712 Cost of services 54,932.850 4.680,538 4,402.615 4.143.11 Gross profit 925,214 49,094 789239 Selling general and administrative expenses $46,198 797.813 756,128 Earnings from operations 79,016 51,281 Other income (expensel, et 31,111 1.471 (187) Earnings from continuing operations before taxes 80,487 51,094 30.250 Income taxes 23,112 14,813 10,750 Earnings from continuing operations 57,375 36.281 19.470 Earnings from discontinued operations, net of tax 6,116 2,982 1,741 Net carning 63.491 $ $ 21211 Basic earnings per share Earnings from continuing operations $ 1.59 5 1.02 5 55 Earnings from discontinued operation .17 05 Net caring $ 1.76 $ 1.10 Diluted earnings per share Earnings from continuing operations $ 1.55 5 1.01 55 Earnings from discontinued operation 17 OK $ 1.75 Net caming 5 109 5 60 5 4 5 40 Dividends per share 5 40 berage share outstanding (thousands 35,115 Bask 35,999 35.667 35, 35461 Diluted n) Fiscal year included 53 weeks a-Using the balance sheets, prepare a vertical common-size analysis for 2007 and 2006. Use total assets as a base. b. Using the balance sheets, prepare a horizontal common-size analysis for 2007 and 2006. Use 2006 as the base. c. Comment on significant trends that appear in (a) and (b). Q2; STATEMENTS OF EARNINGS For the three fiscal year ended December 31, 2006 Kelly Services, Inc. and Subsidiaries 2006 2005 20041) (In thousands of dollars except per share item Revenue from service 55,605,752 $5,251712 Cost of services 54,932.850 4.680,538 4,402.615 4.143.11 Gross profit 925,214 49,094 789239 Selling general and administrative expenses $46,198 797.813 756,128 Earnings from operations 79,016 51,281 Other income (expensel, et 31,111 1.471 (187) Earnings from continuing operations before taxes 80,487 51,094 30.250 Income taxes 23,112 14,813 10,750 Earnings from continuing operations 57,375 36.281 19.470 Earnings from discontinued operations, net of tax 6,116 2,982 1,741 Net carning 63.491 $ $ 21211 Basic earnings per share Earnings from continuing operations $ 1.59 5 1.02 5 55 Earnings from discontinued operation .17 05 Net caring $ 1.76 $ 1.10 Diluted earnings per share Earnings from continuing operations $ 1.55 5 1.01 55 Earnings from discontinued operation 17 OK $ 1.75 Net caming 5 109 5 60 5 4 5 40 Dividends per share 5 40 berage share outstanding (thousands 35,115 Bask 35,999 35.667 35, 35461 Diluted n) Fiscal year included 53 weeks a-Using the balance sheets, prepare a vertical common-size analysis for 2007 and 2006. Use total assets as a base. b. Using the balance sheets, prepare a horizontal common-size analysis for 2007 and 2006. Use 2006 as the base. c. Comment on significant trends that appear in (a) and (b). Vertical Analysis Melcher Company Income Statement For the Years Ended December 31 2005 2004 2003 $ 100,000 100.0% $95,000 100.0% $91.000 100.0% 65.000 65.0% 60,800 64.0% 56.420 62.0% 35,000 35.0% 34,200 36.0% 34,580 38.0% Sales revenue Cost of goods sold Gross profit Operating expenses: Selling expense General expense Total operating expense Operating Income before taxes Taxes related to operations Net Income 14.000 16.000 30.000 5,000 1,500 $ 3.500 14.0% 16.0% 30.0% 5.0% 1.5% 3.5% 11,400 15,200 26.600 7,600 2,280 $ 5,320 12.0% 16.0% 28.0% 8.0% 2.4% 5.6% 10,000 13,650 23.650 10,930 3.279 $ 7,651 11.0% 15.0% 26.0% 12.0% 3.6% 8.4% Each financial statement element is presented as a percentage of a designated base. Horizontal Analysis Melcher Company Income Statement For the Years Ended December 31 2005 2004 2003 $ 100 000 $ 96 000 $91 000 65 000 60 800 56 420 35 000 34 200 34 580 2005 109.9% 115.2% 101,2% 2004 104,4% 107,8% 98.9% 2003 100,0% 100,0% 100.0% Sales revenue Cost of goods sold Gross profit Operating expenses Selling expense General expense Total operating expense Operating Income before taxes Taxes related to operations Net Income 14 000 16 000 30 000 5 000 1 500 $ 3500 11 400 15 200 26 600 7 600 2 280 $ 5320 10 000 13 650 23 650 10 930 3279 $ 7651 140.0% 117.2% 126.8% 45.7% 45.7% 45.7% 114,0% 111,4% 112.5% 69.5% 69.5% 69.5% 100,0% 100,0% 100,0% 100,0% 100.0% 100.0% Each financial statement element is presented as a percentage of a base amount from a selected year. Q2; STATEMENTS OF EARNINGS For the three fiscal year ended December 31, 2006 Kelly Services, Inc. and Subsidiaries 2006 2005 20041) (In thousands of dollars except per share item Revenue from service 55,605,752 $5,251712 Cost of services 54,932.850 4.680,538 4,402.615 4.143.11 Gross profit 925,214 49,094 789239 Selling general and administrative expenses $46,198 797.813 756,128 Earnings from operations 79,016 51,281 Other income (expensel, et 31,111 1.471 (187) Earnings from continuing operations before taxes 80,487 51,094 30.250 Income taxes 23,112 14,813 10,750 Earnings from continuing operations 57,375 36.281 19.470 Earnings from discontinued operations, net of tax 6,116 2,982 1,741 Net carning 63.491 $ $ 21211 Basic earnings per share Earnings from continuing operations $ 1.59 5 1.02 5 55 Earnings from discontinued operation .17 05 Net caring $ 1.76 $ 1.10 Diluted earnings per share Earnings from continuing operations $ 1.55 5 1.01 55 Earnings from discontinued operation 17 OK $ 1.75 Net caming 5 109 5 60 5 4 5 40 Dividends per share 5 40 berage share outstanding (thousands 35,115 Bask 35,999 35.667 35, 35461 Diluted n) Fiscal year included 53 weeks a-Using the balance sheets, prepare a vertical common-size analysis for 2007 and 2006. Use total assets as a base. b. Using the balance sheets, prepare a horizontal common-size analysis for 2007 and 2006. Use 2006 as the base. c. Comment on significant trends that appear in (a) and (b)