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

question 54

Short Answer

Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below. (Round to the nearest tenth) $$\begin{array} { | l l |} \hline \text { Revenue } & \\\text { Gross Sales } & \$ 228,000 \\\text { Less: Sales Returns and Allowances } & 7,900 \\\text { Net Sales } & 220,100 \\\text { Cost of Good Sold } & \\\text { Merchandise Inventory, Jan. 1 } & 37,400 \\\text { Net purchases } & 55,900 \\\text { Freight In } & 675 \\\text { Goods Available for Sale } & 93,975 \\\text { Less: Merchandise Inventory, Dec. } 31 & 85,400 \\\text { Cost of Goods Sold } & 8,575 \\\text { Gross Margin } & \$ 211,525 \\\hline\end{array}$$

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