The Vertical Analysis of the Income Statement of Bates,Inc

question 150

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:

Union Contracts

Agreements between labor unions and employers detailing wages, working conditions, and rights for union members.

Nonunion Workers

Employees who are not members of a labor union and do not have their employment terms negotiated collectively.

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.

Labor Law

A body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.