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Prepare a vertical analysis of Bridgford Foods income statement. Enter the percentages in columns C, E, and G. Prepare a projected income statement assuming sales
Prepare a vertical analysis of Bridgford Foods income statement. Enter the percentages in columns C, E, and G.
Prepare a projected income statement assuming sales increase by 9% in 2020.
- Average your vertical analysis percentages for each income statement account and enter the results in column H, rows 4 - 11. Example: Add columns C, E, and G and divide by 3. (60.58+63.17+67.57)/3=63.77%. Column H, row 5 = 63.77%.
- Enter your projected sales number in column J, row 4.
- Column J: Multiply projected sales by the average percentage.
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Financial Analysis:
1. Open the Excel spreadsheet provided. Prepare a vertical analysis of Bridgford Foods income statement. Enter the percentages in columns C, E, and G. For additional information regarding vertical analysis, please review the following.
Vertical Analysis
2. Prepare a projected income statement assuming sales increase by 9% in 2020.
Average your vertical analysis percentages for each income statement account and enter the results in column H, rows 4 - 11. Example: Add columns C, E, and G and divide by 3. (60.58+63.17+67.57)/3=63.77%. Column H, row 5 = 63.77%.
Enter your projected sales number in column J, row 4.
Column J: Multiply projected sales by the nter your projected sales number in column J, row 4.
3. Ratio Computations. Use Excel formulas to calculate financial ratios listed with the income statement and balance sheet tabs. Calculate the ratio for all four years (i.e. 2016-2018 and 2020). Do not prepare ratios that require data from the 2020 balance sheet. In this case, an X is entered in the appropriate cell.
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