PA13-4 (Static) Vertical Analysis of an Income Statement (LO 13-3, LO 13-5) 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. 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? 3. Has Simultech'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.) $ SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues $ 2,062 100% Cost of Goods Sold 1,637 79 % Selling, General, and Administrative Expenses 333 % Other Operating Expenses 53 3 % Interest Expense 22 % Income before Income Tax Expense 17 1% Income Tax Expense 6 0 % Net Income $ 11 % Previous Year 2,200 100 % 1,721 % 346 16% 12 11% 26 11% 95 % 1 % 33 62 $ Required 1 Required 2 Required 3 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 Required 1 Required 2 Required 3 Has Simultech's net profit margin increased, or decreased, over the two years? O Increased O Decreased