Cochran Corporation, Inc Using Vertical Analysis, What Percentage Is Assigned to Cost of COCHRAN

question 180

Multiple Choice

Cochran Corporation, Inc. has the following income statement (in millions) : COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2017
$\begin{array}{lr}\text { Net Sales } & \$ 240 \\\text { Cost of Goods Sold } & 150 \\\text { Gross Profit } & 90 \\\text { Operating Expenses } & \$ 65 \\\text { Net Income } & \$ 25\end{array}$ Using vertical analysis, what percentage is assigned to cost of goods sold?

• A) 37%
• B) 63%
• C) 100%
• D) 50%

---

Definitions:

Federal Trade Commission

An independent agency of the United States government, established in 1914, whose principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices.

False And Deceptive Advertising

Marketing practices that mislead or lie to consumers about the benefits, qualities, or ingredients of a product or service.

Rite Aid

An American drugstore chain that provides a variety of health and wellness solutions, including filling prescriptions, health products, and other retail items.

Staples

Basic or essential food products or materials that are widely used and in regular demand.