Question

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 line item (a)–(f) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does Simultech’s Cost of Goods Sold for the year ended January 31, 2013, as a percentage of revenues, represent better or worse performance as compared to that for the year ended
January 31, 2012?
3. Do the percentages for (c) and (f) that you calculated in 1 indicate whether Simultech’s net profit margin has changed over the twoyears?


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  • CreatedFebruary 27, 2015
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