Prepare vertical analysis of the income statement for Corporation J for 2017 and 2016. Given info: Income statement for the year 2016 and 2017.

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Prepare vertical analysis of the income statement for Corporation J for 2017 and 2016.

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Given info: Income statement for the year 2016 and 2017.

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Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage:

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Formula:

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Verticalanalysispercentage=(SpecificitemBase\u2009amount)×100

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This analysis is otherwise called as common-size statement.

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Vertical analysis for income statement is performed by setting the net sales as 100 percentage and from that each item’s percentage is computed. Net sales are assumed as a base amount.

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Use the below formula to determine the percentage amount:

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Incomestatementitempercentage=EachitemonIncomeStatementNetSales×100

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Prepare vertical analysis of the income statement for Corporation J for the year 2017 and 2016.

\r\n', 'sectionSequence': 1, 'computed': {'sectionNameWithHtmlRemoved': 'Explanation', 'sectionTextWithHtmlRemoved': 'Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage: Formula: Vertical analysis percentage = ( Specific item Base amount ) × 100 This analysis is otherwise called as common-size statement. Vertical analysis for income statement is performed by setting the net sales as 100 percentage and from that each item’s percentage is computed. Net sales are assumed as a base amount. Use the below formula to determine the percentage amount: Income statement item percentage = Each item on Income Statement Net Sales × 100 Prepare vertical analysis of the income statement for Corporation J for the year 2017 and 2016. Corporation J Income statement (Vertical Analysis) For the year ended 2017 and 2016 Details 2017 s'}}]}]