Question: Athletic World reports the following vertical analysis percentages. Did Athletic Worlds income before tax as a percentage of sales increase, decrease, or stay the same?

Athletic World reports the following vertical analysis percentages.

Did Athletic World’s income before tax as a percentage of sales increase, decrease, or stay the same? If net income as a percentage of sales increases, does that mean net income also increases? Explain.

2021 2020 Sales 100% 100% Cost of goods sold 48% 56% Operating expenses 35% 30%

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