A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required:

Question:

A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below.

Sales Revenues Cost of Goods Sold SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S.

Required:
1. Complete the vertical analysis by computing each line item ( a )–( f ) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does Simultech’s Cost of Goods Sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year?
3. Has Simultech’s net profit margin increased, or decreased, over the two years?

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