Vertical analysis (common-size) percentages for Cullumber Company’s sales revenue, cost of goods sold, and expenses are listed here.
 

Vertical Analysis		2017			2016			2015
Sales revenue		100	%		100	%		100	%
Cost of goods sold		60.0			64.2			65.6
Expenses		24.7			27.1			29.5

 
 
 
 
 

Calculate Cullumber’s net income as a percent of sales. (Round answers to 1 decimal place, e.g. 5.2.)
 

Net income		for 2017_________2016____________2015_________________

 

 

Did Cullumber’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?_____________
 

Cullumber’s net income as a percent of sales

decreased/increased/remained unchanged?

 

Horizontal analysis (trend analysis) percentages for Phoenix Company’s sales revenue, cost of goods sold, and expenses are listed here.

Horizontal Analysis		2017			2016			2015
Sales revenue		96.2	%		104.8	%		100.0	%
Cost of goods sold		101.0			98.0			100.0
Expenses		105.6			95.4			100.0

Explain whether Phoenix’s net income increased, decreased, or remained unchanged over the 3-year period (essay).