600 800 1,400 18,600 Operating Expenses: Selling Expenses 400 Administrative Expenses 600 Total Operating Expenses 1.000 Operating Income 5,000 Other Income and (Expenses): Interest Expense (200) Total Other Income and (Expenses) (200) Income Before Income Taxes 4,800 Income Tax Expense 1,000 Net Income $ 3,800 Which of the following is correct regarding a vertical analysis? O A. Smith Company has a lower percentage for income tax expense. B. Jones Company has a higher percentage for gross profit. C. Smith Company has a higher percentage for net income. OD. Smith Company has a higher percentage for cost of goods sold. (600) (600) 18,000 5,000 $13,000 600 800 1,400 18,600 Operating Expenses: Selling Expenses 400 Administrative Expenses 600 Total Operating Expenses 1.000 Operating Income 5,000 Other Income and (Expenses): Interest Expense (200) Total Other Income and (Expenses) (200) Income Before Income Taxes 4,800 Income Tax Expense 1,000 Net Income $ 3,800 Which of the following is correct regarding a vertical analysis? O A. Smith Company has a lower percentage for income tax expense. B. Jones Company has a higher percentage for gross profit. C. Smith Company has a higher percentage for net income. OD. Smith Company has a higher percentage for cost of goods sold. (600) (600) 18,000 5,000 $13,000