Question

Current Attempt in Progress Operating data for Martinez Corp. are presented as follows. Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, es. 12.1\%.) Prepare a schedule showing a vertical analysis for 2022 and 2021 . (Round percentages to 1 decimol place, eg. 12.1\%) Saved work will be auto-submitted on the due date. Auto-

Answer 1

To prepare a vertical analysis for Martinez Corp., calculate the percentages of line items as a proportion of the total for 2022 and 2021.

Step-by-step explanation:

To prepare a vertical analysis for Martinez Corp. for the years 2022 and 2021, you will need to compare each item on the company's income statement or balance sheet to a base figure from that statement. For an income statement, the base figure is typically total sales revenue, and for a balance sheet, it is total assets. Let's assume you are working with an income statement and want to analyze the data. In order to prepare a vertical analysis for Martinez Corp. for 2022 and 2021, you will need to calculate the percentages for each line item as a proportion of the total. This will allow you to compare the different line items and their relative importance. The formula for vertical analysis is:

Percentage = (Line Item / Total) * 100

For example, if the total revenue for 2022 is $1,000, and the Cost of Goods Sold is $300, the vertical analysis percentage for Cost of Goods Sold would be (300 / 1000) * 100 = 30%.