In Vertical Analysis of an Income Statement, the 100% Figure

question 52

Multiple Choice

In vertical analysis of an income statement, the 100% figure is

• A) net income.
• B) cost of goods sold.
• C) gross profit.
• D) net sales.

---

Definitions:

Annual Reports

Comprehensive reports produced annually by companies to detail their financial performance, operations, and future outlook.

Year-End Inventory

Year-End Inventory is the total value of all inventory held by a company at the end of its fiscal year, crucial for financial reporting and tax calculations.

Weighted Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Inventory Balance

The total value of a company's goods and materials held in stock, as recorded on the balance sheet.