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Required:

a. Prepare a vertical analysis of the 2018 income statement data for Stewart Corporation?

b. Discuss Briefly the improvement or lack thereof in financial position and operating results from 2017 to 2018 of Stewart Corporation

The financial statements of Stew art Corporation appear below: STEWART CORPORATION Comparativ e Balance Sheets December 31, 2017-18 Assets Cash Short-term investments Accounts receivable (net) Inventory Property, plant and equipment (net) 2018 S 50,000 100,000 150,000 75.000 175,000 650.000 750.000 50,000 100,000 150,000 Total assets Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings Total iabilities and stockholders' equity S 50,000 00,000 200,000 375,000 275,000 $1,000,000 75,000 225,000 400,000 375,000 175,000 1.250.000 STEWART CORPORATION Income Statement For the Year Ended December 31, 2018 Net sales Cost of goods sold Gross profit Expenses 1,000,000 625.000 375,000 Operating expenses Interest expense 5105,000 45,000 150,000 225,000 67.500 Total expenses Income before income taxes Income tax expense Net income