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Exercise-
Vertical analysis (common size) percentages for Kochheim Company's sales, cost of goods sold, and expenses are shown below.
Vertical Analysis
2015
2014
2013
Sales
100.0
Cost of goods sold
49.6
53.0
55.4
Expenses
18.0
18.3
20.7
(a) Calculate net income.
(b) Did Kochheim's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?
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