The following is a summary of information presented on the income statement of HR Flowers for December 31, 2007.

-What would vertical analysis report with respect to 2007 net sales revenue?
A) Vertical analysis would report cost of goods sold as 79.19% of net sales revenue.
B) Vertical analysis would report a dividend yield of $8.20.
C) Vertical analysis would report net sales revenue as the 100% base amount.
D) Vertical analysis would report a 2.60% decrease in net sales revenue.

Question

The following is a summary of information presented on the income statement of HR Flowers for December 31, 2007.
 
-What would vertical analysis report with respect to 2007 net sales revenue?
A) Vertical analysis would report cost of goods sold as 79.19% of net sales revenue. 
B) Vertical analysis would report a dividend yield of $8.20. 
C) Vertical analysis would report net sales revenue as the 100% base amount. 
D) Vertical analysis would report a 2.60% decrease in net sales revenue.

Quizplus · Accepted Answer

Vertical analysis reports each amount on a financial statement as a percentage of another item. For net sales revenue, it is common to report it as the 100% base amount against which other items are compared.

The Following Is a Summary of Information Presented on the Income