The following are comparative financial statements of the Perez Company for 2006, 2007, and 2008:

Required
On the basis of the given information:
1. Prepare horizontal analyses for Perez Company using a base-year-to-date approach for 2006 through 2007, and 2006 through 2008.
2. Prepare vertical analyses for the 2007 and 2008 financialstatements.

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Comparative Income Statements For Years Ended December 31 2007 361,500 2008 2006 $407,000 $400,000 156,000 $332,000 $320,000 $ 115,000 Sales returns 7.000 500 (12,000) $350,000 (244,000 (222,000 205,000) $128,000 Cross profit Selling expenses Administrative expenses (39,550) (45,825) (60,232) (46,664) 4.150(4,200) (3.580) (35,690) $110207 04( Total Income before income taxes Income tax expense Net income Number of common shares Earnings per share Comparative Balance Sheets (90,414 $ 37,586 (83,483) S 45,793 (13,73811276)19432 9,455 S 22,062 S 26,310 9,000 December 31 2007 $ 12,650 Receivables (net) Inventories Noncurrent assets Total Assets 2008 S 15,500 11,000 38,000 286,500 $351,000 6,600 30,000 Notes payable Common stock, $5 par Retained earnin 16,200 13,500 39,000 3 36,500 40,000 50,000 90,000 um on common stock 72,000 gs 105,000 Total Liabilities and Stockholders Equity $351,000 $302,000