Vertical analysis is that the proportional analysis of a financial plan, wherever every item on a financial plan is listed as a proportion of another item. Typically, this implies that each item on AN earnings report is declared as a proportion of income, whereas each item on a record is declared as a proportion of total assets.The most common use of vertical analysis is at intervals a financial plan for one fundamental measure, in order that you'll see the relative proportions of account balances. Vertical analysis is additionally helpful for timeline analysis, wherever you'll see relative changes in accounts over time, like on a comparative basis over a five-year amount. for instance, if the price of products sold encompasses a history of being four-hundredth of sales in every of the past four years, then a replacement proportion of forty eighth would be a cause for alarm.

Sales $1,000,000 100%

Cost of products sold 400,000 40%

Gross margin 600,000 60%

Salaries and wages 250,000 25%

Office rent 50,000 5%

Supplies 10,000 1%

Utilities 20,000 2%

Other expenses 90,000 9%

Total expenses 420,000 42%

Net profit 180,000 18%

Prepare vertical analysis for Crestwood to determine the component precentages of its assets, liabilities and stockholders equity. round to nearest one-tenth percent.

Assets

total current assets: $945000

long term investment: $132500

property: $517500

Total assets: $159500

Liabilities:

total liab; $303000

long term debt; $497000

Total Liab: $800000

Stockholders equity

Total equity: $ 795000

total liab and stock equity $159500