NOTE: Throughout this lab, every time a screenshot is requested, use your computer's screenshot tool, and paste each screenshot to the same Word document. Label each screenshot in accordance to what is noted in the lab. This document with all of the screenshots included should be uploaded through Connect as a Word or PDF document when you have reached the final step of the lab. In this lab, you will: Required: 1. Perform vertical analysis on United Continental's income statement. Ask the Question: How can a vertical analysis of the United Continental's income statement highlight changes from one year to the next? Master the Data: Apply the same steps as Lab 6-4 to the Lab 6-4 Alt Data.xlsx dataset to perform vertical analysis for United Continental. Software needed Excel Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4) . Data: Excel File Lab 6-4 Alt Data.xlsx. Perform the Analysis: Refer to Lab 6-4 Alternate in the text for instructions and Lab 6-4 steps for each the of lab parts. Share the Story: We have now completed the vertical analysis and can share it with decision makers to learn what items increased, which items decreased, and by what percentage in hopes of gaining more knowledge of what happened. B D 1 United Continental Holdings, Inc. (Ual) 2 Statements of Consolidated Operations 3 Period End 12/31/17 10-K 12/31/18 10-K 4 $32,404,000,000 $1,035,000,000 $4,297,000,000 $37,736,000,000 $37,706,000,000 $1,237,000,000 $2,360,000,000 $41,303,000,000 5 Operating revenue: 6 Passenger 7 Cargo 8 Other operating revenue 9 Total operating revenue 10 Operating expense: 11 Salaries and related costs 12 Aircraft fuel 13 Landing fees and other rent 14 Regional capacity purchase 15 Depreciation and amortization 16 Aircraft maintenance materials and outside repairs 17 Distribution expenses 18 Aircraft rent 19 Special charges (Note 14) 20 Other operating expenses 21 Total operating expenses 22 Operating income 23 Nonoperating income (expense): 24 Interest expense 25 Interest capitalized 26 Interest income 27 Miscellaneous, net (Note 14) 28 Total nonoperating expense, net 29 Income before income taxes 30 Income tax expense (benefit) (Note 14) 31 Net income $11,045,000,000 $6,913,000,000 $2,240,000,000 $2,232,000,000 $2,149,000,000 $1,856,000,000 $1,349,000,000 $621,000,000 $176,000,000 $5,657,000,000 $34,238,000,000 $3,498,000,000 $11,458,000,000 $9,307,000,000 $2,359,000,000 $2,601,000,000 $2,240,000,000 $1,767,000,000 $1,558,000,000 $433,000,000 $487,000,000 $5,801,000,000 $38,011,000,000 $3,292,000,000 ($643,000,000) $ 84,000,000 $57,000,000 $3,000,000 ($499,000,000) $2,999,000,000 $868,000,000 $2,131,000,000 ($ 729,000,000) $70,000,000 $101,000,000 ($ 76,000,000) ($634,000,000) $2,658,000,000 $529,000,000 $2,129,000,000 32 33 Required: 1. What is the 2018 net income margin for this company? O 5.15% O 9.27% O 7.97% O 5.65% 2. Is passenger revenue as a percent of total operating revenues increasing or decreasing from 2017 to 2018? O Increasing O Decreasing 3. Are total operating expenses as a percent of total operating revenues increasing or decreasing from 2017 to 2018? O Increasing O Decreasing 4. Are salaries and related costs as a percent of total operating revenues increasing or decreasing from 2017 to 2018? O Increasing O Decreasing 5. What percent of 2018 sales is depreciation and amortization? O 5.69% O 5.42% O 5.91% O 6.30%