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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 65
Vertical Analysis of an Income Statement
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 line Item ( a )-( f ) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does Simultech's Cost of Goods Sold for the year ended January 31, 2013, as a percentage of revenues, represent better or worse performance as compared to that for the year ended January 31, 2012
3. Do the percentages for ( c ) and ( f ) that y6u calculated in 1 indicate whether Simultech's net profit margin has changed over the two years
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 line Item ( a )-( f ) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does Simultech's Cost of Goods Sold for the year ended January 31, 2013, as a percentage of revenues, represent better or worse performance as compared to that for the year ended January 31, 2012
3. Do the percentages for ( c ) and ( f ) that y6u calculated in 1 indicate whether Simultech's net profit margin has changed over the two years
Explanation
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Vertical Analysis of an Income Statement...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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