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
Problem 1Q
Related questions
Question
do not give solution in image
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb1bbf58-5e94-444a-bc1b-96cb0d2eedb7%2Faab6dbc2-e124-4d00-b2f1-d0f7c6a0dbb2%2F01yndh_processed.jpeg&w=3840&q=75)
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?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education