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?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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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%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e61bbd8-2425-4abe-a629-e318cae1d2b4%2F459a5b97-c101-4603-8725-cabb0363c9c1%2Flwjnijc_processed.jpeg&w=3840&q=75)
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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