Hello,Attached find the completed work together with the plagiarism report. Go through it and in case you need any corrections kindly let me know.All the best.
Common size analysis
• It is also called vertical analysis
• converts each line of financial statement data into data that can
easily be compared, that is, data in form of percentages (common
• For example;
• income statement can be presented as a percentage of the net sales, a balance
sheet as a percentage of total assets or total liabilities and shareholders’ equity.
TASER INTERNATIONAL INC.
(CONSOLIDATED COMMON-SIZE INCOME STATEMENTS)
• For the year ended December 31st
Cost of Goods Sold
Sales, general & admin expenses
Research and development expenses
Income(loss) from operations
Interest and other income statement
Income (loss) before tax
Provision(benefit) for income taxes
N/B : % = operations /sales *100%
Chart Representing Consolidated Common-Size Income
Interpretation of Data
According to the common size analysis of taser company calculated above the profitability of the
company is decreasing this is because :
• The gross margin /sales percentage has reduced from 61.4% in 2008 to 52.2% in 2010.
• They are having little net income which later gets to losses .Net income(loss)/sales has reduced from 3.9% to
(5.04%) which means the company will not be able to pay dividends in the long run.
• The sales and admin expenses have increased over the years from 41.7% to 45% in 2010 which are too high
leaving a small amount as net income.
• The interest rates on loans have decreased fr...