Reference no: EM131045800

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.