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

question 262

Essay

Vertical analysis (common-size) percentages for Austin Company's sales, cost of goods sold, and expenses are listed here. $\begin{array}{lccc}\text { Vertical Analysis }&2015&2014&2013\\\text { Sales revenue } & 100.0 \% & 100.0 \% & 100.0 \% \\\text { Cost of goods sold } & 61.2 & 62.4 & 63.5 \\\text { Expenses } & 26.5 & 27.4 & 28.5\end{array}$ 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:

30 Years

Refers to a specific time duration, often notable as a period for long-term financial investments, bonds, or mortgages, signifying a significant milestone in various contexts.

Injurious Falsehood

A legal wrong involving the intentional making of untrue statements that harm another's business interests.

Good Faith

Honesty in fact; an honest intention to abstain from taking an unfair advantage of another.

Declaratory Judgment Action

A legal proceeding in which a court is asked to rule on the rights, duties, or obligations of one or more parties in a dispute before an actual injury has occurred.