Please Refer to the Vertical Analysis of Income Statement Data

question 125

Multiple Choice

Please refer to the vertical analysis of income statement data shown below: The figure 8.5% shown for net income in 2013 signifies that:

• A)in 2013, net income is equal to 8.5% of net sales revenues.
• B)in 2013, net income is up 8.5% versus the previous year.
• C)in 2013, net income is 8.5% of gross profit.
• D)in 2013, net income is equal to 8.5% times the income before income tax.

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Definitions:

Conservation

The protection and preservation of natural resources and the environment through careful management and sustainable practices.

Preservationists

Individuals or groups dedicated to the protection and preservation of natural resources, historical sites, or cultural artifacts.

Wise-Use Resource

A concept promoting the sustainable management and use of natural resources for economic and social benefits.