Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively? Net Sales Revenue $ 649,000 Cost of Sales 431,000 Gross Profit 218,000 Operating and Other Expenses 88,500 Interest Expense 32,500 Income Tax Expense 35,500 Net Income $ 61,500 Cost of Sales Gross Profit Interest Expense A) 73.4 % 100.0 % 16.3 % B) 49.7 % 60.7 % 39.7 % C) 100.0 % 50.6 % 8.2 % D) 66.4 % 33.6 % 5.0 % Multiple Choice Option B Option C Option A Option D
Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively? Net Sales Revenue $ 649,000 Cost of Sales 431,000 Gross Profit 218,000 Operating and Other Expenses 88,500 Interest Expense 32,500 Income Tax Expense 35,500 Net Income $ 61,500 Cost of Sales Gross Profit Interest Expense A) 73.4 % 100.0 % 16.3 % B) 49.7 % 60.7 % 39.7 % C) 100.0 % 50.6 % 8.2 % D) 66.4 % 33.6 % 5.0 % Multiple Choice Option B Option C Option A Option D
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively?
Net Sales Revenue | $ | 649,000 | |
Cost of Sales | 431,000 | ||
Gross Profit | 218,000 | ||
Operating and Other Expenses | 88,500 | ||
Interest Expense | 32,500 | ||
Income Tax Expense | 35,500 | ||
Net Income | $ | 61,500 | |
Cost of Sales | Gross Profit | Interest Expense | ||||||||
A) | 73.4 | % | 100.0 | % | 16.3 | % | ||||
B) | 49.7 | % | 60.7 | % | 39.7 | % | ||||
C) | 100.0 | % | 50.6 | % | 8.2 | % | ||||
D) | 66.4 | % | 33.6 | % | 5.0 | % | ||||
Multiple Choice
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Option B
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Option C
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Option A
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Option D
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