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.

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 Sales Revenues $ 2,095 100 % $ 2,190 100 % Cost of Goods Sold 1,657 79 1,701 Selling, General, and Administrative Expenses 313 326 15 Other Operating Expenses 57 3 17 1 Interest Expense 26 28 1 Income before Income Tax Expense 42 2 118 Income Tax Expense 6 0 30 1 $ 36 % $ 88 %

Explanation / Answer

             Simultech Corporation                                                                                              income statement       Jan 31, 2013                          Jan 31,2012 Sales revenue $2,095 100% 2,190 100% Cost of goods sold 1,657 79% 1,701 78% Selling ,general and Administrative exp 313 15% 326 15% other operating exp 57 3% 17 1% interest expense 26 1% 28 1% income before tax 42 2% 118 5% income tax expense 6 0% 30 1% Net income 36 2% 88 4%

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