Stockton Co A)Option a
B)Option B
C)Option C
D)Option D

question 37

Multiple Choice

Stockton Co.prepared its income statement containing the information below.Using vertical analysis,what percentages would apply to cost of sales,gross profit,and interest expense,respectively? $\begin{array}{lr}\text { Net Sales Revenue } & \$ 508,000 \\\text { Cost of Sales } & 328,000 \\\text { Gross Profit } & 180,000 \\\text { Operating and Other Expenses } & 65,200 \\\text { Interest Expense } & 20,400 \\\text { Income Tax Expense } & 25,600 \\\text { Net Income } & \$ 68,800\end{array}$ $\begin{array}{lrrr}&\text { Cost of Sales}&\text {Gross Profit }&\text {Interest Expense }\\\text { A) } & 182.2 \% & 100.6 \% & 14.2 \% \\\text { B) } & 476.7 \% & 261.6 \% & 37.2 \% \\\text { C) } & 100.0 \% & 54.9 \% & 7.8 \% \\\text { D) } & 64.6 \% & 35.4 \% & 4.0 \%\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Blue Wavelengths

Refers to the portion of the electromagnetic spectrum with wavelengths between approximately 450 and 495 nanometers, perceived as the color blue.

Green Wavelengths

Parts of the visible light spectrum that are perceived as green, important for photosynthesis as they are absorbed by plants for energy.

UV Wavelengths

The portion of the electromagnetic spectrum with wavelengths shorter than visible light but longer than X-rays, known for having sterilizing properties and causing sunburn.

Action Spectrum

A graph of the effectiveness of light at specific wavelengths in promoting a light-requiring reaction. Compare with absorption spectrum.