1. Using Table 4-9, perform a vertical analysis of the Mosbacher Insurance Agency.

a. Using the Internet, obtain the income statement for the insurance company where you insure your automobile (casualty insurance company) and per- form a vertical analysis of this company.

b. Compare and contrast the two companies.

TABLE 4-9 Income Statement for Mosbacher Insurance Agency Mosbacher Insurance Agency Abbreviated Average Income Statement January 1 to December 31 Amount $650,000 Category Revenue Operating Expenses Salary/Commission Phone, Computer, Utilities Postage Marketing, printing & Advertising Insurance Rent Misc Total Operating Expenses Operating Income Taxes Net Income After Taxes 150,000 10,000 10,000 25,000 20,000 15,000 20,000 $250,000 $400,000 $ 75,000 $325,000 Note: Expenses obtained via memo from Gerson Mosbacher, December 20, 2007