Calculate sheridans net income as a percent of sales

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Reference no: EM131178212

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.

Reference no: EM131178212

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