Prepare a vertical and horizontal analysis of both the Income Statement and the Balance Sheet and calculate the required ratios using the template provided by your instructor. The template must indicate whether the ratio is favorable or unfavorable.

	Caterpillar Inc.
Consolidated Results of Operations for the Years Ended December 31
(Dollars in millions except per share data)
	2015	2014	2013
Sales and revenues:
Net Sales	47,011	55,184	55,656
Operating costs:
Cost of goods sold	33,742	39,767	40,727
Selling, general and administrative expenses	5,199	5,697	5,547
Research and development expenses	2,165	2,135	2,046
Other operating (income) expenses	2,649	2,257	1708
Total operating costs	43,755	49,856	50,028
Operating profit	3,256	5,328	5,628
Interest expense excluding Financial Products	507	484	465
Other income (expense)	106	239	-35
Consolidated profit before taxes	2,855	5,083	5,128
Provision (benefit) for income taxes	742	1,380	1,319
Profit of consolidated companies	2,113	3,703	3,809
Equity in profit (loss) of unconsolidated affiliated companies		8	-6
Profit of consolidated and affiliated companies	2,113	3,711	3,803
Less: Profit (loss) attributable to noncontrolling interests	11	16	14
Profit	2,102	3,695	3,789
Profit per common share	3.54	5.99	5.87