The vertical analysis statement of Nobell Inc.is as shown below:
- The figure 47.0% shown for gross profit in 2016 signifies that the ________.
A)gross profit is equal to 47.0% of net income
B)gross profit is increased by 47.0% over the previous year
C)gross profit is 47.0% of net sales revenue
D)gross profit is 47.0% of cost of goods sold

Question

The vertical analysis statement of Nobell Inc.is as shown below: 
- The figure 47.0% shown for gross profit in 2016 signifies that the ________.
A)gross profit is equal to 47.0% of net income 
B)gross profit is increased by 47.0% over the previous year 
C)gross profit is 47.0% of net sales revenue 
D)gross profit is 47.0% of cost of goods sold

Quizplus · Accepted Answer

The figure 47.0% shown for gross profit in 2016 signifies that the gross profit is 47.0% of net sales revenue. This means that for every dollar of sales revenue, 47 cents are left after deducting the cost of goods sold to cover other expenses and generate net income.

The Vertical Analysis Statement of Nobell Inc