A condensed income statement for Simultech Corporation and a partially completed

Question

A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below.

Complete the vertical analysis by computing each missing line item as a percentage of sales revenues.(Round your answers to the nearest whole percent.)

A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below.

SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) For the Years Ended January 31, 2013 January 31, 2012 100 % 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 $ 2,067 1,557 410 42 16 42 100% $ 2,500 1,801 426 13 18 242 30 212 75 17 0 34

Explanation / Answer

Jan 31,2012

Cost of goods sold=1801/2500=72%

Income before income tax=242/2500=10%

Net income=212/2500=8%

Jan 31,2013

Selling,general and admn expense=410/2067=20%

Interest expense=16/2067=1%

Net income=34/2067=2%

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