Prepare the common size income statement and balance sheet where each items is expressed as a percentage of total revenues (income statement) or total assets (balance sheet). (Vertical Analysis). (you must use an Excel spreadsheet with formulas).

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1 Southwest Airlines Co. 2 3 OPERATING REVENUES: 4 Passenger 5 Freight 6 Other 7 8 9 OPERATING EXPENSES, NET: 10 Salaries, wages, and benefits 11 12 = 13 → 14 * 15 16 17 21 21 Payroll support and voluntary employee programs, net Fuel and oil Maintenance materials and repairs A Aircraft rentals Landing fees and other rentals Depreciation and amortization Other operating expenses 18 19 20 OPERATING INCOME (LOSS) Total operating expenses, net 22 OTHER EXPENSES (INCOME): 22 23 Interest expense 24 Capitalized interest 25 Interest income 26 Other gains / losses, net Total other expenses (income) 27 28 29 INCOME (LOSS) BEFORE INCOME TAXES 30 PROVISION (BENEFIT) FOR INCOME TAXES 31 NET INCOME (LOSS) 32 33 Dollar amounts in millions. 34 B 31 DEC '21 14,066 187 1,537 15,790 (7,743) 2,960 (3,310) (854) (1,456) (1,272) (2,394) (14,069) 1,721 (467) 36 13 22 (396) 1,325 (348) 977 с 31 DEC '20 31 DEC '19 *** 7,665 161 1,222 9,048 (6,811) 967 (1,849) (750) (1,240) (1,255) (1,926) (12,864) (3,816) (349) 35 32 (158) (440) D (4,256) 1,182 (3,074) 20,776 172 1,480 22,428 (8,293) (4,347) (1,223) (1,363) (1,219) (3,026) (19,471) 2,957 (118) 36 90 (8) 2,957 (657) 2,300 E 31 DEC '18 31 DEC '17 20,455 175 1,335 21,965 (7,649) (4,616) (1,107) (1,334) (1,201) (2,852) (18,759) 3,206 (131) 38 69 (18) (42) 3,164 (699) F 2,465 19,141 173 1,857 21,171 (7,319) (3,940) (1,001) (198) (1,292) (1,218) (2,688) (17,656) 3,515 (114) 49 35 (234) (264) 3,251 237 3,488 G H I K L 1 Southwest Airlines Co. 2 3 OPERATING REVENUES: 4 Passenger 5 Freight 6 Other 7 8 9 OPERATING EXPENSES, NET: 10 Salaries, wages, and benefits 11 12 = 13 → 14 * 15 16 17 21 21 Payroll support and voluntary employee programs, net Fuel and oil Maintenance materials and repairs A Aircraft rentals Landing fees and other rentals Depreciation and amortization Other operating expenses 18 19 20 OPERATING INCOME (LOSS) Total operating expenses, net 22 OTHER EXPENSES (INCOME): 22 23 Interest expense 24 Capitalized interest 25 Interest income 26 Other gains / losses, net Total other expenses (income) 27 28 29 INCOME (LOSS) BEFORE INCOME TAXES 30 PROVISION (BENEFIT) FOR INCOME TAXES 31 NET INCOME (LOSS) 32 33 Dollar amounts in millions. 34 B 31 DEC '21 14,066 187 1,537 15,790 (7,743) 2,960 (3,310) (854) (1,456) (1,272) (2,394) (14,069) 1,721 (467) 36 13 22 (396) 1,325 (348) 977 с 31 DEC '20 31 DEC '19 *** 7,665 161 1,222 9,048 (6,811) 967 (1,849) (750) (1,240) (1,255) (1,926) (12,864) (3,816) (349) 35 32 (158) (440) D (4,256) 1,182 (3,074) 20,776 172 1,480 22,428 (8,293) (4,347) (1,223) (1,363) (1,219) (3,026) (19,471) 2,957 (118) 36 90 (8) 2,957 (657) 2,300 E 31 DEC '18 31 DEC '17 20,455 175 1,335 21,965 (7,649) (4,616) (1,107) (1,334) (1,201) (2,852) (18,759) 3,206 (131) 38 69 (18) (42) 3,164 (699) F 2,465 19,141 173 1,857 21,171 (7,319) (3,940) (1,001) (198) (1,292) (1,218) (2,688) (17,656) 3,515 (114) 49 35 (234) (264) 3,251 237 3,488 G H I K L