Chapter 15, Problem 15.17E

To determine

Vertical Analysis: Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount. Use the following formula to calculate vertical analysis percentage:

$\text{Vertical analysis percentage }=\left(\frac{\text{Specific item}}{\text{Base}\text{amount}}\right)\times 100$

This analysis is otherwise called as common-size statement.

To perform: Vertical analysis for T company’s balance sheet for the year 2016 and 2015.

Given info: Balance sheet of Company T for 2016 and 2015