The following information is provided from Ace Electronics' annual report for the years ended December 31:

-Refer to the Ace Electronics annual report above.Using vertical analysis,$\bold{2012}$ Operating expenses would be represented as ________.
A)11%
B)74%
C)50%
D)42%

Question

The following information is provided from Ace Electronics' annual report for the years ended December 31:

-Refer to the Ace Electronics annual report above.Using vertical analysis,$\bold{2012}$ Operating expenses would be represented as ________.
A)11% 
B)74% 
C)50% 
D)42%

Quizplus · Accepted Answer

To calculate the vertical analysis of Operating expenses for 2012, divide Operating expenses by the Net sales and multiply by 100.

Operating expenses = $16,380
Net sales = $38,800

Vertical analysis of Operating expenses for 2012 = ($16,380 / $38,800) x 100 = 42%

Therefore, the correct choice is D) 42%.

The Following Information Is Provided from Ace Electronics' Annual Report 2012\bold{2012}2012

The Following Information Is Provided from Ace Electronics' Annual Report $\bold{2012}$