Following are the income statements from Nappys recent annual report: Requirements 1. For each of the years

Following are the income statements from Nappy’s recent annual report:

Requirements
1. For each of the years shown, perform a vertical analysis, using sales as the base. Write a paragraph explaining what the analysis shows.
2. Using 2008 as the base year, perform a horizontal analysis for net revenue and cost of sales. What information does this analysis giveyou?

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Nappy Company Income Statements For the YearE nded December 31 2009 2010 2008 12,379 11,497 8,068 138 10,750 8,574 165 Selling, general, and administrative expenses. 0,460 145 4,783 323 (163) 51 4.004 1424 Operating profit .. 4,295 280 (178) 36 4,433 1,438 3,667 160 (219) Interest income.. Income before income taxes..._.... 67 3,675 1244