Vertical analysis

13.8 – 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             60.5         62.9      64.8

Expense                       26.0          26.6      27.5

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

13.9  Horizontal analysis (trend analysis percentages for Spartan company’s sales  cost of goods and expenses are listed here

Horizontal Analysis       2012               2011               2010

Sales                                96.2%           104.8%           100%

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.