Vertical Analysis
Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.
|
Vertical Analysis |
|
2012 |
|
2011 |
|
2010 |
|||
|
Sales |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
Cost of goods sold |
|
61.6 |
|
|
63.2 |
|
|
66.3 |
|
|
Expenses |
|
24.1 |
|
|
26.0 |
|
|
29.7 |
|
(Explain )Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.