Gavette Company reported the following information for the current year and prior year: With respect to current year net sales revenue, what would a vertical analysis report?
A)COGS would be 62.31% of net sales revenue
B)A dividend yield of $18.84
C)A decrease of 21.00% in net sales revenue
D)Net sales revenue would be the base amount

Question

Gavette Company reported the following information for the current year and prior year:  With respect to current year net sales revenue, what would a vertical analysis report?
A)COGS would be 62.31% of net sales revenue 
B)A dividend yield of $18.84 
C)A decrease of 21.00% in net sales revenue 
D)Net sales revenue would be the base amount

Quizplus · Accepted Answer

In a vertical analysis report, net sales revenue would be the base amount and all other items would be expressed as a percentage of net sales revenue. Therefore, the answer is D.

Gavette Company Reported the Following Information for the Current Year