PA13-4 Vertical Analysis of an Income Statement [LO 13-3, 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. (Round your answers to the nearest whole percent.) 1,627 SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues $ 2,066 100 % $ 2,225 100 % Cost of Goods Sold 79 1,731 Selling, General, and Administrative Expenses 343 Other Operating Expenses 502 Interest Expense 24 25 Income before income taxes 22 Income Tax Expense T60 31 Net Income $ 16 % $ 69 356 13 100 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? O Better O Worse 3. Has Simultech's net profit margin has increased or decreased, over the two years? O Increased O Decreased