Please Refer to the Vertical Analysis of Income Statement Data

question 2

Multiple Choice

Please refer to the vertical analysis of income statement data shown below:

The figure 47.0% shown for Gross profit in 2017 signifies that:

• A) in 2017, gross profit is 47% of cost of sales.
• B) in 2017, gross profit is equal to 47% of profit.
• C) in 2017, gross profit is up 47% versus the previous year.
• D) in 2017, gross profit is 47% of revenues.

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Definitions:

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