The Vertical Analysis Statement of Peterson, Inc

question 147

Multiple Choice

The vertical analysis statement of Peterson, Inc. is as shown below: The 20% shown for net income in 2017 signifies that net income ________.

• A) is 20% of net sales revenues
• B) increased by 20% over the previous year
• C) is 20% of gross profit
• D) equals 20 times of the income before income tax

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Definitions:

Internal Communications

The exchange of information and messages within an organization among its members.

External Communications

The process of conveying information and messages from an organization to the outside world, including the public, customers, investors, and other stakeholders.

Vision

A mental image of what the future could or should be, guiding an individual or organization's planning and decision-making processes.

Corporate Culture

A set of shared values, beliefs, and practices that characterizes an organization and influences its members.