Question

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.) 100% $ SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues $ 2,090 Cost of Goods Sold 1.697 Selling, General, and Administrative Expenses 285 Other Operating Expenses Interest Expense 20 Income before income taxes Income Tax Expense Net Income $ 32 Previous Year 2.170 100% 1.6611 2081 13 % $ 131

Answer 1

	Income Statement
	Current year		Previous Year
Sales	2090	100%	2170	100%
Cost of goods sold	1697	81%	1661	77%
S,G and A expenses	285	14%	286	13%
Other operating expenses	51	2%	14	1%
Ineterst expense	20	1%	32	1%
Income before income tax	37	2%	177	8%
Income tax expense	5	0%	46	2%
Net Income	32	2%	131	6%

AutoSave © of HO- Book1 - Excel Sign in - o X File Home Insert Draw Page Layout Formulas Data Review View Help O Tell me what you want to do Share Comments 11 = = n Calibri B I U - - A À - A - E ab General - $ - % 9 Insert Delete - Format 2' AZ O T- Sort & Find & Filter - Select Paste S 2 Conditional Format as Formatting Table Cell Styles Clipboard Font Alignment Number Styles Cells Editing D HI 1 D10 - X fx 131 A B Income Statement Current year 3 Sales 2090 4 Cost of goods sold 1697 5 S,G and A expenses 285 6 Other operating exper 51 7 Ineterst expense 20 8 Income before income 37 9 Income tax expense 5 10 Net Income 32 11 Previous Year 2170 1661 286 14 =B3/$B$3 =B4/$B$3 =B5/$B$3 =B6/$B$3 =B7/$B$3 =B8/$B$3 =B9/$B$3 =B10/$B$3 =D3/$D$3 =D4/$D$3 =D5/$D$3 =D6/$D$3 =D7/$D$3 =D8/$D$3 =D9/$D$3 =D10/$D$3 32 177 46 131