00:01
Asking about vertical analysis.
00:02
So i thought i'd make up a very brief income statement to show an example of vertical analysis.
00:08
So we're just going to make these numbers up.
00:10
We're going to say sales is 2 ,000.
00:17
And then for our expenses, we have cost of goods sold, and we'll say that's 1 ,200.
00:24
Maybe admin expense is 100.
00:32
Depreciation expense could be 150.
00:36
And i'm just making these numbers up.
00:40
Let's say interest expense is 50.
00:47
Making our total expenses $1 ,500.
00:57
And then net income is now $500.
01:08
Okay, so vertical analysis takes sales most often and compares it, compares everything to sales.
01:17
So, for example, if you wanted to know what percent of sales is taken up by our total expenses...