If Net Sales at Good Dog Bakery increased from $36,000 to $63,000 and its cost of goods sold increased from $20,000 to $38,000, the vertical analysis based on net sales would show the following percentages for cost of goods sold: (Round your final answer to the nearest percentage.)
A)36% and 20%.
B)20% and 36%.
C)56% and 60%.
D)60% and 36%.

Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base amount. For cost of goods sold, the percentages are calculated as follows:  - Initial percentage: ($20,000 / $36,000) * 100 = 56%  - Final percentage: ($38,000 / $63,000) * 100 = 60%

If Net Sales at Good Dog Bakery Increased from $36,000