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 of U.S. dollars) Current Year Previous Year Sales Revenues $2,093 100 % $2,350 100 % Cost of Goods Sold 1,587 76 1,771 Selling, General, and Administrative Expenses 383 396 17 Other Operating Expenses 63 3 17 1 Interest Expense 32 21 1 Income before income taxes 28 1 145 Income Tax Expense 8 0 35 1 Net Income $20 % $110 %

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