Oglethorpe Company Reports the Following Information from the Vertical Analysis

question 24

Multiple Choice

Oglethorpe Company reports the following information from the vertical analysis of their income statement: Which of the following statements could be logically concluded from the above data?

• A)The company made a higher gross profit in 2014 than in 2013.
• B)The company made higher net income in 2014 than in 2013.
• C)The company has improved the profit they make per dollar of sales in 2014.
• D)The company's total net income increased by 0.3% in 2014.

---

Definitions:

Modern View of Technological Advance

This refers to the contemporary understanding that technological progress is a key driver of economic growth, influencing productivity, business models, and societal changes.

Profit Incentives

Motivations for businesses and individuals to increase their earnings and achieve financial gains, often driving economic activities and innovation.

Market System

(1) An economic system in which individuals own most economic resources and in which markets and prices serve as the dominant coordinating mechanism used to allocate those resources; capitalism. Compare with command system. (2) All the product and resource markets of a market economy and the relationships among them.

Retained Earnings

Profits that a company keeps after dividends are paid out to shareholders, often used for reinvestment in the business or to pay off debt.