In a Vertical Analysis of an Income Statement,the 100% Figure

question 42

Multiple Choice

In a vertical analysis of an income statement,the 100% figure would be

• A)net sales.
• B)profit.
• C)cost of sales
• D)gross profit.

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Definitions:

Cash Reserves

Funds that a company or individual keeps on hand to meet short-term and emergency funding needs.

Inventory Turnover

A calculation representing the turnover rate of a company's stock, showing how often it's sold and replaced within a given period.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Fixed Asset Turnover

A financial ratio that measures a company’s ability to generate sales from its fixed-asset investments - such as property, plant, and equipment.