Vertical Analysis of an Income Statement A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical...

Vertical Analysis of an Income Statement

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, 2010, as a percentage of revenues, represent better or worse performance as compared to that for the year ended January 31, 2009?

3. Do the percentages for (
c
) and (
f
) that you calculated in 1 indicate whether Simultech’s net profit margin has changed over the two years?