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The Vertical Analysis Statement of Peterson,Inc

question 150

Multiple Choice

The vertical analysis statement of Peterson,Inc.is as shown below:
The vertical analysis statement of Peterson,Inc.is as shown below:   The 20% shown for net income in 2017 signifies that net income ________. A) is 20% of net sales revenues B) increased by 20% over the previous year C) is 20% of gross profit D) equals 20 times of the income before income tax
The 20% shown for net income in 2017 signifies that net income ________.

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Definitions:

Discount

A reduction applied to the usual cost of goods or services.

Markup Rate

The percentage added to the cost price of goods to cover overhead and profit.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Rectangular Room

A prism-shaped space with four walls at right angles to each other, typically used to describe a standard room shape.

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