Financial information for Ridge Ltd is as follows. 2016 2015 Sales Cost of sales Selling expenses...

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Financial information for Ridge Ltd is as follows. 2016 2015 Sales Cost of sales Selling expenses Administrative expenses Income tax expense Profit $1 500 000 $1350000 745 000 123000 738 000 105 000 81000 127800 298 200 92000 162000 378 000 Required: (a) Prepare a schedule showing a vertical analysis for 2016 and 2015. (10 marks) Show workings. [Answer and show workings here] (b) Prepare a brief report outlining the results of your analysis for a potential investor and advise if the investor should invest in Ridge Ltd. (10 marks). Financial information for Ridge Ltd is as follows. 2016 2015 Sales Cost of sales Selling expenses Administrative expenses Income tax expense Profit $1 500 000 $1350000 745 000 123000 738 000 105 000 81000 127800 298 200 92000 162000 378 000 Required: (a) Prepare a schedule showing a vertical analysis for 2016 and 2015. (10 marks) Show workings. [Answer and show workings here] (b) Prepare a brief report outlining the results of your analysis for a potential investor and advise if the investor should invest in Ridge Ltd. (10 marks).

Answer rating: 100% (QA)

Part A 2016 2015 Amount percentage Amount Percentage Sales 1500000 10000 1350000 ... View the full answer