1) Vertical analysis (common size) percentages for Kochheim Company’s sales, cost of goods sold, and expenses are shown below.

Vertical Analysis	2015	2014	2013
Sales	100.0	100.0	100.0
Cost of goods sold	60.2	62.4	63.5
Expenses	25.0	25.6	27.5

(a) Calculate net income for 2015, 2014, & 2013.

2) The following data are taken from the financial statements of Rainsberger Company.

2015	2014
Accounts receivable (net), end of year	$550,000	$520,000
Net sales on account	3,960,000	3,100,000
Terms for all sales are 1/10, n/60.

Compute for each year the accounts receivable turnover. At the end of 2013, accounts receivable (net) was $480,000.(Round answers to 1 decimal place, e.g. 1.6.)

3) Schellhammer Corporation reported the following amounts in 2013, 2014, and 2015.

2013	2014	2015
Current assets	$200,000	$210,000	$240,000
Current liabilities	$150,000	$168,000	$184,000
Total assets	$500,000	$600,000	$620,000

(b)

Perform each of the three types of analysis on Schellhammer’s current assets. (Round percentages to 0 decimal places, e.g. 43% and ratios to 2 decimal places, e.g.1.58.)

2013	2014	2015
Horizontal Analysis
Current assets	%	%	%
Vertical Analysis
Current assets	%	%	%
Ratio Analysis
Current ratio