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P 13–4

20 August, 2015 - 10:15

Assume you are an accountant analysing Escalade Corporation. Escalade has expanded its production facilities by 200% since 2015. Its income statements for the last three years are as follows:

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Required:

  1. Prepare a vertical analysis of Escalade Corporation’s income statement for the three years.
  2. What conclusions can be drawn from this analysis?