Brief Exercise 13-8
Vertical analysis (common-size) percentages for Sheridan Company's sales revenue, cost of goods sold, and expenses are listed here.
|
Vertical Analysis
|
2017
|
2016
|
2015
|
|
Sales revenue
|
100%
|
100%
|
100%
|
|
Cost of goods sold
|
61.4
|
64.9
|
65.7
|
|
Expenses
|
24.3
|
27.0
|
29.6
|
Calculate Sheridan's net income as a percent of sales.
Did Sheridan's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?
Horizontal analysis (trend analysis) percentages for Phoenix Company's sales revenue, cost of goods sold, and expenses are listed here.
|
Horizontal Analysis
|
2017
|
2016
|
2015
|
|
Sales revenue
|
96.2%
|
104.8%
|
100.0%
|
|
Cost of goods sold
|
101.0
|
98.0
|
100.0
|
|
Expenses
|
105.6
|
95.4
|
100.0
|
Explain whether Phoenix's net income increased, decreased, or remained unchanged over the 3-year period.