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

Required:

1. Complete the vertical analysis by computing each line item from (a) through (f) as a percentage of sales revenues. Round to the nearest whole percentage.

2. Does Simultech?s Cost of Goods Sold for the year ended January 31, 2017, as a percentage of revenues, represent better or worse performance as compared to that for the year ended January 31, 2016?

3. Do the percentages for items (c) and (f) that you calculated in requirement 1 indicate whether Simultech?s net profit margin has changed over the two years?

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SIMULTECH CORPORATION Income Statement (summarized) (in millions) For the Years Ended January 31, 2017 January 31, 2016 $2,062 100% Sales Revenues $2,200 100% Cost of Goods Sold 1,637 79 1,721 (d) (a) Selling, General, and Administrative Expenses 333 346 16 Other Operating Expenses 53 3 12 Interest Expense 22 (b) 26 Income before Income Tax Expense 17 95 (e) Income Tax Expense 33 Net Income 11 (c)% 62 (f)%