Vertical Analysis (Common-Size) Percentages for Austin Company's Sales, Cost of Goods

question 253

Essay

Vertical analysis (common-size) percentages for Austin Company's sales, cost of goods sold, and expenses are listed here. Did Austin Company's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Nominal Interest Rate

The stated interest rate on a loan or investment, not adjusted for inflation.

Loanable Funds

The money available for borrowing; the market where savers supply funds for loans to borrowers.

Supply

A relation between the price of a good and the quantity that producers are willing and able to sell per period, other things constant.