The Vertical Analysis of the Income Statement of Bates,Inc

question 88

Multiple Choice

The vertical analysis of the income statement of Bates,Inc.is as shown below:

The figure 47.0% shown for gross profit in 2019 signifies that the gross profit is ________.

• A)equal to 47.0% of net income
• B)increased by 47.0% over the previous year
• C)47.0% of net sales revenue
• D)47.0% of cost of goods sold

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Ratios

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Answering Machine

A device that automatically answers telephone calls and records messages from callers.