Olivera Company Provides the Following Data for the Year 2013

question 103

Multiple Choice

Olivera Company provides the following data for the year 2013:
$$\begin{array} { l r } \text { Net sales revenue } & \$ 398,000 \\\text { Cost of goods sold } & \$ 255,000 \\\text { Operating expenses } & \$ 95,000 \\\text { Income tax expense } & \$ 9,000\end{array}$$
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On a vertical analysis, what percentage would be shown for operating income?

• A) 12.9%
• B) 33.6%
• C) 12.1%
• D) 31.4%

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Definitions:

Existing Structures

Pre-established or pre-existing frameworks, systems, or buildings.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding, including the acquisition of knowledge and the ability to solve problems.

Initiative Versus Guilt

A stage in Erik Erikson's theory of psychosocial development where young children develop a sense of initiative and determination or experience guilt for failing to meet expected standards.

Preoperational Stage

The second stage in Piaget's theory of cognitive development, roughly ages 2 to 7, characterized by symbolic thinking and the use of words and images to represent objects.