Table 4 -1. Income Statement

-Refer to Table 4 -1. Using a vertical analysis of January data, Payroll Taxes were approximately percent
A) 0.0796
B) 0.0737
C) 7.96
D) 7.37

Question

Table 4 -1. Income Statement
 
-Refer to Table 4 -1. Using a vertical analysis of January data, Payroll Taxes were approximately percent
A) 0.0796 
B) 0.0737 
C) 7.96 
D) 7.37

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base amount. In this case, Payroll Taxes are expressed as a percentage of total sales or revenue, which is typically how vertical analysis is conducted. The correct percentage is 7.96%.