Locate the latest available 10-K filing (www.sec.gov/edaux/searches) of Diebold, Inc., an Ohio-based manufacturer of automated teller machines or use the company’s home page (www.diebold.com). Scroll down to the Management Analysis of Results of Operations where vertical and horizontal analyses of the results have been included and answer the following questions:

Required

a. Describe the products and services in which the company deals. Which item (products or services) is growing at the fastest rate? Which item constitutes the largest percentage of sales revenue?

b. For both products and services, how has the cost of sales as a percentage of revenue changed during the last year? Do products or services have a higher gross margin percentage in the most recent year?

c. Have operating and sales expenses been increasing as a percentage of sales?

d. What is the operating income percentage (of net sales) for each of the three years? Comment on the causes of the year-to-year changes.P=968