Using Vertical Analysis on the Statement of Income, a Company's

question 76

True/False

Using vertical analysis on the statement of income, a company's net income as a percentage of sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

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Definitions:

Origin of the Shipment

Refers to the initial location or country from which a shipment of goods starts its journey to the buyer.

Nonferrous Metal

Metals that do not contain a significant amount of iron. This category includes aluminum, copper, lead, nickel, tin, titanium, and zinc among others.

Fly

A term that can refer to the act of moving through air using wings or through travelling by airplane, often unrelated to direct business terminology.

Ferrous Metal

Metals that contain iron. They are known for their strength and are widely used in construction, automotive, and other heavy industries.