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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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses 84,500 Interest Expense 28,500 33,500 Income Tax Expense Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense 15.1% A) B) c) D) 74.1% 100.0% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% 65.4% 34.6% 4.4%

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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses 84,500 Interest Expense 28,500 33,500 Income Tax Expense Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense 15.1% A) B) c) D) 74.1% 100.0% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% 65.4% 34.6% 4.4%

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...
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Help Save & Exit 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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses Interest Expense 214 84,500 28,500 Income Tax Expense 33,500 Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense A) B) 74.1% 100.0% 15.1% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% D) 65.4% 34.6% 4.4% <Prev 24 of 50 Next >
Transcribed Image Text:Help Save & Exit 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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses Interest Expense 214 84,500 28,500 Income Tax Expense 33,500 Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense A) B) 74.1% 100.0% 15.1% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% D) 65.4% 34.6% 4.4% <Prev 24 of 50 Next >
Multiple Choice Option A Option B Option C Option D < Prev. 24 of 50 Next >
Transcribed Image Text:Multiple Choice Option A Option B Option C Option D < Prev. 24 of 50 Next >
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