Using Vertical Analysis of the Income Statement,a Company's Net Income

question 12

True/False

Using vertical analysis of the income statement,a company's net income as a percentage of net sales is 10%;therefore,the operating expenses as a percentage of sales must be 90%.

---

Definitions:

Situational Attribution

The process of attributing a person’s behavior to external or environmental factors.

Rational

Based on reason or logic; characterized by clear, logical thinking or the ability to make reasoned decisions.

Impulsively Spent

Actions of spending money without careful thought or consideration, often driven by sudden urges.

College Decisions

The process of choosing which college to attend, often involving considerations of academic programs, campus life, location, and cost.