A condensed income statement for LaFeuille Incorporated and a partially completed vertical analysis are presented below.

Required:

Complete the vertical analysis by computing each missing line item as a percentage of sales revenues.

Does LaFeuille'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?

Has LaFeuille'$$s net profit margin increased, or decreased, over the two years? LAFEUILLE INCORPORATED

Income Statement $($summarized$)$

$($in millions of U$.$S$.$ dollars$)$

Current Year Previous Year

Sales Revenues $$2,085100\%$ $$2,150100\%$

Cost of Goods Sold $1,73783\%1,621\%$

Selling, General, and Administrative Expenses $245\%24611\%$

Other Operating Expenses $432\%111\%$

Interest Expense $12\%362\%$

Income before Income Tax Expense $482\%236\%$

Income Tax Expense $80\%502\%$

Net Income $$40\%$ $$186\%$