Exercise-
Vertical analysis (common size) percentages for Kochheim Company's sales, cost of goods sold, and expenses are shown below.
|
Vertical Analysis
|
2015
|
2014
|
2013
|
|
Sales
|
100.0
|
100.0
|
100.0
|
|
Cost of goods sold
|
49.6
|
53.0
|
55.4
|
|
Expenses
|
18.0
|
18.3
|
20.7
|
(a) Calculate net income.
(b) Did Kochheim's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?