Please refer to the vertical analysis of income statement data shown below:

The figure 8.5% shown for profit in 2016 signifies that:
A) in 2016, Profit is equal to 8.5% times Profit before tax.
B) in 2016, Profit is equal to 8.5% of Revenues.
C) in 2016, Profit is up 8.5% versus the previous year.
D) in 2016, Profit is 8.5% of Gross profit.

Question

Please refer to the vertical analysis of income statement data shown below:

The figure 8.5% shown for profit in 2016 signifies that:
A) in 2016, Profit is equal to 8.5% times Profit before tax. 
B) in 2016, Profit is equal to 8.5% of Revenues. 
C) in 2016, Profit is up 8.5% versus the previous year. 
D) in 2016, Profit is 8.5% of Gross profit.

Quizplus · Accepted Answer

The Answer is B

Please Refer to the Vertical Analysis of Income Statement Data