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 |
|
60.5 |
|
|
63.9 |
|
|
66.2 |
|
| Expenses |
|
25.8 |
|
|
26.0 |
|
|
29.7 |
|
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.
Horizontal analysis (trend analysis) percentages for Spartan Company's sales, cost of goods sold, and expenses are listed here.
| Horizontal Analysis |
|
2012 |
|
2011 |
|
2010 |
| Sales |
|
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 Spartan's net income increased, decreased, or remained unchanged over the 3-year period.