## Vertical analysis (common-size) percentages for Vallejo Company’

 2009 2010 2011 1 Sales 100.00 100.00 100.00 2 Cost of goods sold 64.50 62.40 59.20 3 Expenses 27.50 25.60 25.00 4 Net profit-(1-2-3) 8.00 12.00 15.80 Net profit to sales %-(4/1) 8.0% 12.0% 15.8%
As per the above calculation, we can deduce that net profit for the company has increased over the 3 year period.

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