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.)

(See below)

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 Sales Revenues $ 2,075 100 % Cost of Goods Sold 1,617 78 Selling, General, and Administrative Expenses Other Operating Expenses Interest Expense Income before income taxes Income Tax Expense Net Income - 147 % Previous Year 2,250 100 % 1,741 366 and Adminitrative Eynenses 353 57 26 22 105 34 $ $ 71