Question: E17-6 Preparing and Interpreting a Vertical (Common Size) Analysis Use the information in E17-5 to conduct a vertical (common size) analysis of Computer Tycoons income
E17-6 Preparing and Interpreting a Vertical (Common Size) Analysis Use the information in E17-5 to conduct a vertical (common size) analysis of Computer Tycoon’s income statements and then answer the following questions. Required: 1. Was Computer Tycoon able to lower its costs of goods to offset the decrease in selling price? How did you know? 2. What was the main reason Computer Tycoon’s net income as a percent of revenues decreased?
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