Perform a Vertical Analysis for the Entry "Gross Sales" on the Portion

question 112

Multiple Choice

Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below. (Round to the nearest tenth) $$\begin{array} { l l } \text { Revenue } & \\\text { Gross Sales } & \$ 320,000 \\\text { Less: Sales returns and Allowances } & 15,000 \\\text { Net Sales } & 305,000 \\\text { Operating Expenses } & \\\text { Salaries and Benefits } & 100,700 \\\text { Rent and Utilities } & 25,400 \\\text { Advertising and Promotions } & 2,380 \\\text { Insurance } & 2,700 \\\text { Miscellaneous Expenses } & 19,395 \\\text { Total Operating Expenses } & \$ 150,575 \\\hline\end{array}$$

• A) 104.9%
• B) 103.6%
• C) 95.3%
• D) 58.6%

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Definitions:

Metatarsophalangeal Joint

The joint located between the metatarsal bones of the foot and the proximal bones (phalanges) of the toes, important for foot movement.

Car Door

A movable barrier used for entry and exit, as well as security and protection of the occupants, found on the sides of automobiles.

Dentoalveolar Joint

A term that could describe the structural and functional relationship between teeth (dentition) and the alveolar bone, but not a commonly used term. More accurately referred to as the periodontal ligament.

Cervical Region

The upper part of the spine, consisting of the first seven vertebrae that form the neck.