Vertical Analysis of an Income Statement

Vertical Analysis of an Income Statement

A condensed income statement for Electronic Arts and a partially completed vertical analysis follow.

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Required:

1. Complete the vertical analysis by computing each line item ( a) –( d) as a percentage of net revenues. Round to the nearest whole percentage.

2. Does Electronic Arts’s 2009 Cost of Goods Sold, as a percentage of Net Revenues, represent better or worse performance as compared to 2008?

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