Use the following information for questions.
-In performing a vertical analysis, the percentage for cost of goods sold is
A) 4.4%.
B) 40.0%.
C) 44.4%.
D) 400.0%.

Question

Use the following information for questions. 
-In performing a vertical analysis, the percentage for cost of goods sold is
A) 4.4%. 
B) 40.0%. 
C) 44.4%. 
D) 400.0%.

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base figure. Typically, for an income statement, each item is expressed as a percentage of total sales. If cost of goods sold is 44.4% of total sales, then the correct percentage is 44.4%.

Use the Following Information for Questions