Business, 05.05.2020 04:06, daartist3121

Athletic World reports the following vertical analysis percentages. 2021 2020 Sales 100 % 100 % Cost of goods sold 35 % 32 % Operating expenses 45 % 51 % 1. Did Athletic World’s income before tax as a percentage of sales increase, decrease, or stay the same? Increase Decrease Stay the same 2. If net income as a percentage of sales increases, does that mean net income also increases? Yes No

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answered: rome58

1) It is Increased

2) No

The calculation is as follows:

1) Income statement :

2021 2020

Sales 100% 100%

Cost of goods sold 35% 32%

Gross profit 65% 68% (Sales - Cost of goods)

Operating expenses 45% 51%

Income before tax 20% 17% (Gross profit - Operating expense)

Income of Athletic World's, before tax as a percentage of sales Increased.

2. No, It is not important to increasing the net income at the time when net income of sale in terms of percentage increases.

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answered: 21hendlill

1) Increased

2) No

Explanation:

As per the data given in the question,

1) Income statement :

2021 2020

Sales 100% 100%

Cost of goods sold 35% 32%

Gross profit 65% 68% (Sales - Cost of goods)

Operating expenses 45% 51%

Income before tax 20% 17% (Gross profit - Operating expense)

Income of Athletic World's, before tax as a percentage of sales Increased.

2. No,It is not necessary to increasing in net income when net income of sale as percentage increases.

answered: Guest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

answered: Guest

The correct answer for this question would be letter choice a) simulating the speech conditions or the first option.

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Athletic World reports the following vertical analysis percentages. 2021 2020 Sales 100 % 100 % Cost...