Overview:In the discussion this week, you selected a publicly traded company to research. In this Financial Analysis assignment, you will obtain the company's financial statements to develop a company

Module 2 Assignment 1 – Company Financial Analysis – Part 1
Income Statement – Common-Size (Vertical) Analysis

The vertical analysis is prepared on the Excel Income Statement you saved from Mergent.

For this analysis, you will prepare the common-size analysis right next to the year of data you are analyzing.

Overview:In the discussion this week, you selected a publicly traded company to research. In this Financial Analysis assignment, you will obtain the company's financial statements to develop a company 1

Type Common-Size in a cell to the right of the most recent data.
Click in the cell that is in the Common-Size column and the Net Revenues row (On your income statement, it may say Sales, Net Sales, or Revenues).
Type the equals sign =.
Next, click on the revenue value in the most recent year (to the left).
Now, type the division sign / (forward slash)
Next, click right back on the revenue value you were just on.
This next step is very important!
Click on the F4 key. This will make the denominator cell an absolute cell (it will stay the denominator).
You know you have an absolute cell when the cell reference has a $ before the letter and before the $.
You should see something like this: B16/$B$16.
Hit Enter.

At this point, you should see a 1.
Hit the % in the Number Menu Bar.
Now you should see 100%.
Grab the corner of the cell and drag it down to the end of the data.
Repeat this process for the next year.

Now you can see what percentage of revenue (sales) was used for expenses. How did this change from the year before? What percent of sales is the gross profit (this is also the gross profit ratio), and operating income? How did they change from year-to-year? What percentage of sales is net income?

Record your analysis on your excel sheet.

***SAVE YOUR EXCEL INCOME STATEMENT***