Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3.

a. Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. Note: Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).

FINCH COMPANY
Vertical Analysis of Balance Sheets
	Year 4			Year 3
	Amount	Percentage of Total		Amount	Percentage of Total
Assets
Current assets
Cash	$16,800		%	$13,500		%
Marketable securities	20,300			7,500
Accounts receivable (net)	54,700			46,400
Inventories	135,500			144,300
Prepaid items	25,600			11,300
Total current assets	252,900			223,000
Investments	28,000			20,500
Plant (net)	270,900			255,200
Land	30,900			24,100
Total long-term assets	329,800			299,800
Total assets	$582,700			$522,800
Liabilities and stockholders' equity
Liabilities
Current liabilities
Notes payable	$16,000			$4,900
Accounts payable	112,400			99,400
Salaries payable	19,400			15,000
Total current liabilities	147,800			119,300
Noncurrent liabilities
Bonds payable	98,700			98,700
Other	31,900			26,300
Total noncurrent liabilities	130,600			125,000
Total liabilities	278,400			244,300
Stockholders' equity
Preferred stock (par value $10, 4% cumulative, nonparticipating; 7,300 shares authorized and issued)	73,000			73,000
Common stock (no par; 50,000 shares authorized; 10,000 shares issued)	73,000			73,000
Retained earnings	158,300			132,500
Total stockholders' equity	304,300			278,500
Total liabilities and stockholders equity	$582,700		%	$522,800		%

b. Prepare a vertical analysis of the income statements for Year 4 and Year 3. Note: Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).

FINCH COMPANY
Vertical Analysis of Income Statements
	Year 4			Year 3
	Amount	Percentage of Total		Amount	Percentage of Total
Revenues
Sales (net)	$230,500		%	$211,400		%
Other revenues	9,200			6,300
Total revenues	239,700			217,700
Expenses
Cost of goods sold	119,700			101,200
Selling, general, and administrative expense	54,000			48,400
Interest expense	7,000			6,200
Income tax expense	22,900			21,900
Total expenses	203,600			177,700
Net income	$36,100		%	$40,000		%