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

1) It is Increased

2) No

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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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.

years agooo ahaha. but honestly they need to update ! : )

answer; /// i do believe the correct answer is (possession utility);