If a Company's Income Statement Showed Sales Equal to $365,000,a

question 53

Multiple Choice

If a company's income statement showed sales equal to $365,000,a gross margin of $120,000,and net income of $45,000,then a vertical analysis of the income statement would show a percentage figure for net income equal to:

• A)100.0%
• B)37.5%
• C)32.3%
• D)12.3%

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Definitions:

Repair

The process of restoring equipment, machinery, or property to its previous condition to ensure functionality.

Joint Product

Products that are generated simultaneously in the same process and cannot be distinguished until a certain point in production.

Scrap Price

The amount of money that can be received for materials or products that are considered waste or unusable in their primary form.

Raw Material

The basic material from which products are made, not yet subjected to any processing or manufacturing.