Question

Toulou ACC141 OM2 Managerial Accounting Homework: Assign 3 - chap 14 - vertical & common size Score: 0 of 1 pt 10 of 15 (8 complete) 14.2-18a Jill Corporation prepared a vertical analysis of its income statement and the following excerpt is available: Sales $1,500,000 Cost of Goods Sold $689,400 Gross Profit $810.600 What is the cost of Goods Sold percentage as found on a vertical analysis income statement? O A. 45.00% OB. 2.18% O c. 100% OD. 54.04% Click to select your answer and then click Check Answer. All parts showing Clear All

Answer 1

On vertical analysis of income statament, the Base figure will be the sales amount.

So, cost of goods sold percentage will be,

= (Cost of goods sold/sales) x 100

= ( 689,400/1,500,000)x100

= 45.96%.

Hence, option A is the correct answer.

SUMMARY:

The percentage of cost of goods sold on vertical analysing of income statament is 45.96%.

Hence, option A is the correct answer.