Vertical Analysis

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   61.6     63.2     66.3  
Expenses   24.1     26.0     29.7  

 

(Explain )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.