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 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) For the Years Ended January 31, 2013 January 31, 2012 $ 2,090 1,697 285 51 20 37 100 % 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 100% $ 2,170 1,661 286 81 13 32 0 46 32 131

Explanation / Answer

2. BETTER

3.DECREASED

January 31, 2013 January 31,2012 Sales Revenue $ 2090            100 % $ 2170 100 % Cost of Goods Sold 1697               81 1661 77 Selling General & Administrative expenses 285               14 286 13 Other Operating Expenses 51                 2 14 1 Interest Expense 20                 1 32 1 Income before Income Tax Exp 37                 2 177 8 Income Tax Expense 5                 0 46 2 Net Income $ 32                 2 % $ 131 6 %

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