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TOST 'Pets Are Us Ltd' and 'Small Animals Ltd' are competitors in the pet industry (i.e. they both have Pet Shops). Complete a vertical analysis
TOST 'Pets Are Us Ltd' and 'Small Animals Ltd' are competitors in the pet industry (i.e. they both have Pet Shops). Complete a vertical analysis on each of the businesses below and based on your findings make a recommendation and justification, include 2 points from the data, as to the best performing business. All answers must be rounded to 2 decimal places. Vertical Analysis Pets Are Us Ltd % Small Animals Ltd % Sales 376,000 100% 175,000 100% Cost of Sales 169,200 105,000 Gross Profit 206,800 70,000 Total Operating Expenses 125,000 45,000 EBIT 81,800 25,000 Interest Expense 23,000 2,000 Profit before income tax 58,800 23,000 Income tax expense 17,000 7,000 Profit 41,800 16,000
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