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1. Use the skills of vertical analysis to convert the following items in the three years’ income statements of  both firms into the percentages of net sales.   a. Net sales / Revenues b. Cost of Goods Sold (COGS) c. Gross Margin if available  d. Selling and Administrative  Fill in the following table. Firm A  (Year  2007) Firm A  (Year  2008) Firm A  (Year  2009) Firm B  (Year  2007) Firm B  (Year  2008) Firm B (Year  2009) Net Sales / Revenues 100% 100% 100% 100% 100% 100% COGS /Cost of Sales 19.20% 20.80% 19.84% 40.07% 39.56% 37.39% Gross Margin  80.80% 79.20% 80.16% 59.93% 60.44% 62.61% 30.07% 28.94% 27.65% 16.52% 17.20% 15.44% Operating Income 37.23% 34.85% 38.57% 30.64% 30.43% 35.15% Net Income 29.26% 24.93% 30.02% 25.33% 19.39% 27.57% Report your observation taking together the results from three years in less than 200 words . 2.
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Table Details - 1.

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