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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. (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 %

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 38E: Sundahl Companys income statements for the past 2 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. (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 % $ 2,200 100 % Cost of Goods Sold 1,637 79 1,721 Selling, General, and Administrative Expenses 333 346 16 Other Operating Expenses 53 3 12 1 Interest Expense 22 26 1 Income before income taxes 17 95 Income Tax Expense 33 1 Net Income $ 11 % $4 62
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. (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 % $ 2,200 100 % Cost of Goods Sold 1,637 79 1,721 Selling, General, and Administrative Expenses 333 346 16 Other Operating Expenses 53 3 12 1 Interest Expense 22 26 1 Income before income taxes 17 95 Income Tax Expense 33 1 Net Income $ 11 % $4 62
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