Reference no: EM132572651

Question 1: Vertical analysis (common-size) percentages for Baker Company's sales revenue, cost of goods sold, and expenses are as follows. Did Baker's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support.

Vertical Analysis                      2018                 2017                2016

Sales revenue                        100.0%             100.0%       100.0%

Cost of goods sold                     60.0                 63.9            65.0

Expenses                                    26.0                   26.6            27.5