The income statement for Talisman Energy Inc. follows:

Instructions
(a) Calculate the horizontal percentage of a base-year amount, assuming 2008 is the base year.
(b) Prepare a vertical analysis for each year, using total revenue as the base.
(c) Identify any significant changes from 2008 to 2010, including the impact of discontinued operations on your analysis.

Transcribed Image Text:

TALISMAN ENERGY INC. Income Statement Year Ended December 31 (in millions) 2010 $6,802 110 6,912 5,613 1,299 891 408 240 S 648 2009 $5,946 115 6,061 6,558 (497) 161 (658) 1,095 S 437 2008 Net sales Other revenue Total revenue Operating expenses Profit (loss) from continuing operations before income tax Income tax expense Profit (loss) from continuing operations Income from discontinued operations, net of income tax Profit $8,442 112 8,554 4,052 4,502 1,623 2,879 640 S3,519