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 missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.)

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?

• Better

• Worse

3. Has Simultech's net profit margin has increased, or decreased, over the two years?

• Increased

• Decreased

SIMULTECH CORPORATION Income Statement (summarized) in millions of U.S. dollars) Current Year Previous Year 1001% S 2,090 1.697 285 51 20 37 Sales Revenues Cost of Goods Sold Selling, General, and Administrative Expenses Other Operating Expenses Interest Expense Income before income taxes Income Tax Expense Net Income 100%is 2.170 1.661 286 14 32 81 13 46 131 32