A condensed income statement for Northwest Airlines and a partially completed vertical analysis are presented below.

Required:

1. Complete the vertical analysis by computing each line item from (a) through (f) as a percentage of sales revenues. Round to the nearest whole percentage.

2. Does the percentage that you calculated in requirement 1(a) suggest that Northwest tried to increase its profit by cutting repairs and maintenance costs in 2017 compared to 2016?

3. Refer to the percentages that you calculated in requirements 1(c) and 1(f). Is Northwest?s net profit margin improving or declining?

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NORTHWEST AIRLINES Income Statement (summarized) For the Year Ended December 31 (in millions) 2017 2016 $12,104 $10,350 Sales Revenues 100% 100% Salaries, Wages, and Benefits (d) 31 3,468 3,704 Fuel, Oil, Repairs, and Maintenance (a) 3,620 3,044 29 Other Operating Expenses 3,792 (b) 3,576 35 Other Expenses (Revenues) 243 98 Income before Income Tax Expense (e) 745 6. 164 Income Tax Expense 286 65 Net Income (c)% (f)% 459 99