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. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues 2,062 100 % S 2,200 100 % Cost of Goods Sold 1,637 79 1,721 Selling, General, and Administrative Expenses Other Operating Expenses 333 346 16 53 3 12 Interest Expense 22 26 Income before income taxes 17 1 95 Income Tax Expense Net Income 6 33 11 % S 62 %

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. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues 2,062 100 % S 2,200 100 % Cost of Goods Sold 1,637 79 1,721 Selling, General, and Administrative Expenses Other Operating Expenses 333 346 16 53 3 12 Interest Expense 22 26 Income before income taxes 17 1 95 Income Tax Expense Net Income 6 33 11 % S 62 %

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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