Homework Answers
Correct Answer is Option b - Total revenues should be the base expressed as 100%
By doing this we can interpret that if company do a sale of $100 then $66.6 (66.6%) would be the expense and balance $33.3 (33.3%) would be the profit of the company. here sale is combine of expense and profit so it would easier to analyse if we take sale as 100% [66.6%(expense part) + 33.3%(profit Part)]
Extras : option a & c is wrong because if we took above provided expense as 33% then sale percentage would be 49.5% and profit would be 16.5% which make very ambigous to interpret or analyse the percentage of income statement.
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The following line items are from the vertical analysis of an income statement: Amount Percent $300...
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A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below....
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