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.
The following line items are from the vertical analysis of an income statement: Amount Percent $300...
In vertical analysis, line items on the income statement are generally expressed as a percentage of a.net sales. b.cost of goods sold. c.total assets. d.net income.
The following are line items from the horizontal analysis of an income statement: Increase/ Increase/ (Decrease) (Decrease) 2017 Amount Percent $20,000 10,000 (100) 20% 25% (15)% Fees earned Wages expense Supplies expense Which of the line items shows cause for concern? 0 a. Supplies expense $120,000 $100,000 40,000 700 50,000 600 b. Fees earned c. Wages expense O d. All of these choices are correct.
A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) 100% $ SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues $ 2,090 Cost of Goods Sold 1.697 Selling, General, and Administrative Expenses 285 Other Operating Expenses Interest Expense 20 Income before income...
PA13-4 Vertical Analysis of an Income Statement [LO 13-3, LO 13-5 A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below Required 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the 5 2.4 points neerest whole percent.) Book SIMULTECH CORPORATION Income Statement (summarized) in millions of Ul.S. dollars) Print Previous Year 100%| $ 2,455| 1,821 446 15 16 157 24 %|$...
A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Income Statement (summarized) in millions of U.S. dollars) Current Year Previous Year S 2.075 100% S 2.250 1,741 366 14 24 Sales Revenues 1001% Cost of Goods Sold 1,617 78 Selling, General, and Administrative Expenses353 16...
A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers the nearest whole percent.) Previous Year SIMULTECH CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Sales Revenues $ 2.067 1001S Cost of Goods Sold 1.557 Selling. General and Administrative Expenses Other Operating Expenses Interest Expense Income before income taxes Income...
A condensed income statement for Interactive Arts and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of net revenues. TIP: In the prior year (2015) Cost of Goods Sold was 31 percent of Net Revenues, computed as ($1,413+$4,540). (If the percentage is a loss, enter the amount with a negative sign in front of it. Round your answers to the nearest whole percent.) INTERACTIVE ARTS Income Statemeont...
Requirement 1. Prepare a vertical analysis for McConnell for both its income statement and balance sheet. Begin by preparing a vertical analysis for McConnell for its income statement. (Round the percent of total amounts to one decimal place, X.X%.) McConnell Department Stores, Inc. Income Statement Year Ended December 31, 2018 Amount Percent of Total Net Sales Revenue $ % 783,000 526,176 Cost of Goods Sold % Gross Profit % 256,824 163,647 % Operating Expenses Operating Income % 93,177 4,698 Other...
Complete a vertical analysis of the following income statement from Gomez Corporation. • Do not use a negative sign in your answers. • Round to the nearest whole percentage point (for example, enter 60 for 60.4% or 61 for 60.5%). Vertical Analysis 2020 2019 Income Statement 2020 2019 % of Sales % of Sales Revenues $145,000 $159,500 0 % Cost of goods sold 102,400 115,200 0 % 0 % Gross margin 42,600 44,300 Operating expenses 30,800 35,000 $ 11,800 $...
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