A condensed income statement for Lullaby Associates and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Lullaby'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 Lullaby's net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) LULLABY ASSOCIATES Income Statement (summarized) Sales Revenues Cost of Goods Sold Selling, General, and Administrative Expenses Other Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income (in millions of U.S. dollars) Current Year Previous Year $ 2,093 100 % $ 2,350 100 % 1,587 76 % 1,771 % 383 % 396 17 % 63 3% 17 32 % 21 1% 28 1 % 145 % 8 0% 35 1 % $ 20 % $ 110 % < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Does Lullaby'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? Better OWorse < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Has Lullaby's net profit margin increased, or decreased, over the two years? Increased Decreased < Required 2 Required 3 >