b. Perform vertical analysis of the income statement and balance sheet data for 2017 and 2018. Use sales revenue as the base figure for the income statement. Use total assets as the base figure for the balance sheet. A 1 2 3 4 5 Revenues: 6 Net Sales 7 Other Revenues 8 Total Revenues C D Rosson Company Vertical Analysis of Income Statements Expenses: 0 Cost of Goods Sold 1S,G&A Expenses 2 Interest Expense 3 Income Tax Expense 4 Total Expenses s Income Before Discontinued 6 Operations 7 Discontinued Operations Gain (net of tax) Net Income 0 2018 2017 Amount % of Total Amount E % of Total 3 5 Assets 5 Cash Vertical Analysis of Balance Sheets 2018 Marketable Securities Accounts Receivable Inventories o Prepaid Expenses 1 Total Current Assets 2 Plant and Equipment (net) 3 Intangibles 4 Total Assets Liabilities 6Accounts Payable 7 Other Accrued Liabilities B Total Current Liabilities 0 Bonds Payable Total Liabilities Stockholders' Equity 2 Common Stock ($5 par) 3 Paid-in Cap. in Excess of Par Retained Earnings 5 Total Stockholders' Equity Total Liabilities and Stk. Equity Amount 2017 % of % of Total Amount Total The Information below comes from the financial statements of Rosson Company. Rosson Company Income Statement Years ended 2017 and 2018 Revenues: Net Sales Other Revenues. Total Revenues.. Expenses: Cost of Goods Sold.. SG&A Expenses.. Interest Expense. Income Tax Expense.. Total Expenses.... Income Before Discontinued Operations Discontinued Operations Gain (net of tax) Net Income. 2018 2017 $299,000 $246,000 8,000 9,000 307,000 255,000 172,000 138,000 44,000 40,000 4,000 4,500 31,000 25,400 251,000 207,900 56,000 47,100 9,000 0 $ 65,000 $47,100 Assets Current Assets: Rosson Company Balance sheet Years ended 2017 and 2018 Cash Marketable Securities. Accounts Receivable. Inventories..... $ 7,500 1,000 $ 12,500 1,500 50,000 47,500 150,000 145,000 Prepaid Expenses. 5,000 2,500 Total Current Assets. 213,500 209,000 Plant and Equipment (net).. 147,000 157,000 Intangibles. 30,500 0 Total Assets.... $391,000 $366.000 Total Assets.... Liabilities: Current Liabilities: Accounts Payable..... Liabilities and Stockholders' Equity Other Accrued Liabilities................ Total Current Liabilities................ Bonds Payable...... Total Liabilities. $391,000 $366,000 $ 58,000 $ 79,500 25,000 22,500 83,000 102,000 90,000 100,000 173,000 202,000 Stockholders' Equity: Common Stock ($5 par)............... 130,000 130,000 Paid-In Capital in Excess of Par.......... of Par 20,000 20,000 Retained Earnings........ 68,000 14,000 Total Stockholders' Equity............ 218,000 164,000 Total Liabilities and Stockholders' Equity.. $391,000 $366,000 $14.00 $8.55 Common stock market price at year-end **Dividend payments amounted to $11,000 in 2018 and $5,000 in 2017.