To follow is selected information about The Blaz Company for the current year and prior year. $$\begin{array} { | l | l | l | }
\hline \text { Account } & \text { Current } & \text { Priar } \
\hline \text { Net sales revenue } & \$ 648,000 & \$ 595,000 \
\hline \text { Cost of goods sold } & \$ 401,760 & \$ 425,000 \
\hline \text { Gross profit } & \$ 246,240 & \$ 170,000 \
\hline \text { Selling/general expenses } & \$ 136,080 & \$ 93,500 \
\hline \text { Net income before tax } & \$ 110,160 & \$ 76,500 \
\hline \text { Income tax } & \$ 32,400 & \$ 22,800 \
\hline \text { Net income } & \$ 77,760 & \$ 53,700 \
\hline
\end{array}$$
- What is the current year's selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year)?
A)22.87%
B)14.43%
C)21.00%
D)145.54%

Question

To follow is selected information about The Blaz Company for the current year and prior year. $$\begin{array} { | l | l | l | } 
\hline \text { Account } & \text { Current } & \text { Priar } \
\hline \text { Net sales revenue } & \$ 648,000 & \$ 595,000 \
\hline \text { Cost of goods sold } & \$ 401,760 & \$ 425,000 \
\hline \text { Gross profit } & \$ 246,240 & \$ 170,000 \
\hline \text { Selling/general expenses } & \$ 136,080 & \$ 93,500 \
\hline \text { Net income before tax } & \$ 110,160 & \$ 76,500 \
\hline \text { Income tax } & \$ 32,400 & \$ 22,800 \
\hline \text { Net income } & \$ 77,760 & \$ 53,700 \
\hline
\end{array}$$
- What is the current year's selling and general expenses percentage (as would be found on a vertical analysis of the income statement for the current year)?
A)22.87%
B)14.43%
C)21.00%
D)145.54%

Quizplus · Accepted Answer

The selling and general expenses percentage for the current year can be found by dividing the selling and general expenses by the net sales for the current year and multiplying by 100: 
$62,000 / $295,238 * 100 = 21%. Therefore, the correct answer is C.

To Follow Is Selected Information About the Blaz Company for the Current