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A condensed income statement for Simultech Corporation and a partially completed vertical a Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sale 2. Does Simultech's Cost of Goods sold for the current year, as a percentage of revenues, rep compared to that for the previous year? 3. Has Simultech's net profit margin increased, or decreased, over the two years?

A condensed income statement for Simultech Corporation and a partially completed vertical a Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sale 2. Does Simultech's Cost of Goods sold for the current year, as a percentage of revenues, rep compared to that for the previous year? 3. Has Simultech's net profit margin increased, or decreased, over the two years?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 missing line item as a percentage of sales revenues. 2. Does Simultech's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Simultech's net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues Cost of Goods Sold Selling, General, and Administrative Expenses Other Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income S S 2,062 1,637 333 53 22 17 6 11 < Required 1 100 % se se 79 % 3% % 1% 0% % $ S Previous Year 2,200 1,721 346 12 26 95 33 62 Required 2 > 100 % % 16 % 1% 1% % 1% %
Transcribed Image Text: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 missing line item as a percentage of sales revenues. 2. Does Simultech's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Simultech's net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues Cost of Goods Sold Selling, General, and Administrative Expenses Other Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income S S 2,062 1,637 333 53 22 17 6 11 < Required 1 100 % se se 79 % 3% % 1% 0% % $ S Previous Year 2,200 1,721 346 12 26 95 33 62 Required 2 > 100 % % 16 % 1% 1% % 1% %
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