Vertical analysis percentages from Waubon Corp.'s income statement are listed here: ___________________________2018...................2017...............2016 Net sales............................100.0%...............100.0%............100.0% Cost of goods
Question:
Vertical analysis percentages from Waubon Corp.'s income statement are listed here:
___________________________2018...................2017...............2016
Net sales............................100.0%...............100.0%............100.0%
Cost of goods sold..............59.4%.................60.5%..............60.0%
Operating expenses.............19.6%.................20.4%..............20.0%
Income tax expense..............4.2%...................3.8%................4.0%
Assuming that Waubon did not have any non-operating or irregular items, did its net income as a percentage of sales increase, decrease, or remain unchanged over the three-year period? Explain.
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine