Athletic World reports the following vertical analysis percentages. Sales Cost of goods sold Operating expenses 2021 100% 32% 429 O Increase O Decrease O Stay the same 2020 100% 268 518 1. Did Athletic World's income before tax as a percentage of sales increase, decrease, or stay the same?
Athletic World reports the following vertical analysis percentages. Sales Cost of goods sold Operating expenses 2021 100% 32% 429 O Increase O Decrease O Stay the same 2020 100% 268 518 1. Did Athletic World's income before tax as a percentage of sales increase, decrease, or stay the same?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Athletic World reports the following vertical analysis percentages.
Sales
Cost of goods sold
Operating expenses
O Increase
O Decrease
O Stay the same
2021
100%
32%
429
1. Did Athletic World's income before tax as a percentage of sales increase, decrease, or stay the same?
2020
100%
268
51%
Yes
O No
2. If net income as a percentage of sales increases, does that mean net income also increases?
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