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.)

SIMULTECH CORPORATION
Income Statement (summarized)
(in millions)
	For the Years Ended
	January 31, 2017			January 31, 2016
Sales revenues	$3,306	100	%	$3,556	100	%
Cost of goods sold	2,820	85	%	2,500		%
Selling, General, and Administrative expenses	244		%	250	7	%
Other operating expenses	60	2	%	15	0	%
Interest expense	25		%	20	1	%
Income before income tax expense	157	5	%	771		%
Income tax expense	51	2	%	91	3	%
Net income	$106		%	$680		%

2. Does Simultechs 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?

multiple choice 1

• Better

• Worse

3. Do the percentages that you calculated for net income indicate whether Simultech's net profit margin has increased or decreased over the two years?

multiple choice 2

• Increased

• Decreased