17-M Mastery Problem: Analyzing financial statements LO1, 2, 3, 4, 5, 6, 7, 8 1. Review the comparative. financial statements. 2. Complete the vertical analysis. 3. Complete the horizontal analysis. 4. Print the worksheets. The income statement and balance sheet for Aqua Products, Inc., and forms for completing this problem are given in the Working Papers. Instructions: 1. Prepare a vertical analysis of the income statement and balance sheet. Round percentage calculations to the nearest 0.1%. 2. Prepare a horizontal analysis of the comparative income statement and balance sheet Round percentage calculations to the nearest 0.1%. 3. Compare the actual vertical analysis ratios to management's benchmark ratios. Identify whether each ratio is within management's target range. 4. Using the following information, calculate the following ratios for the current year: (a) earnings per share, (b) dividend yield, and (c) price-earnings ratio. Round the dividend yield to the nearest 0.01%. Round the price-earnings ratio to the nearest 0.1. Evaluate each ratio relative to prior-year ratios. Number of shares outstanding Dividends per share Market price 10,000 $0.80 $92.40 5. Calculate the (a) working capital and (b) current and quick ratios. Round ratios to the nearest 0.01. Determine if these ratios are within management's target range.