The Vertical Analysis of the Income Statement of Bates,Inc

question 45

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:

Pictograph

A symbol or image that represents an object or concept, used in early forms of writing or in modern graphs and charts.

Picture Units

Visual elements used in communication or presentations to represent or illustrate information.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion, where the arc length of each slice is proportional to the quantity it represents.

Bilateral Column Chart

A graphical representation of data where columns on two sides of a central axis compare related entities.