-Which of the following would result from a vertical analysis of Robbins Corporation's income statement?
A) Gross margin is 40.48 % of net sales for 2017.
B) Net sales increased $110,000 or 35.48% during 2017.
C) Accounts receivable increased $10,000 or 40.00% during 2017.
D) Cost of goods sold increased $40,000 or 19.05% during 2017.

Question

-Which of the following would result from a vertical analysis of Robbins Corporation's income statement?
A) Gross margin is 40.48 % of net sales for 2017. 
B) Net sales increased $110,000 or 35.48% during 2017. 
C) Accounts receivable increased $10,000 or 40.00% during 2017. 
D) Cost of goods sold increased $40,000 or 19.05% during 2017.

Quizplus · Accepted Answer

Gross margin is 40.48% of sales ($420,000 - 250,000 = $170,000 Gross margin.
$170,000 / $250,000 = 40.48%). The remaining responses are examples of horizontal analysis.

-Which of the Following Would Result from a Vertical Analysis