81.

The following information pertains to the CJ Company:

Net Sales Revenue	$48,230
Cost of Sales	31,729
Gross Profit	16,501
Operating and Other Expenses	12,715
Interest Expense	280
Income Tax Expense	1,311
Net Income	$2,195

What would be reported next to Interest Expense on a common sized income statement?

A.

12.7%

B.

1.7%

C.

0.6%

D.

0.9%

82.

Cotton Products, Inc. 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	$635,000
Cost of Sales	410,000
Gross Profit	225,000
Operating and Other Expenses	81,500
Interest Expense	25,500
Income Tax Expense	32,000
Net Income	$86,000

	Cost of Sales	Gross Profit	Interest Expense
A)	182.2%	100.0%	14.2%
B)	476.7%	261.6%	37.2%
C)	100.0%	54.9%	7.8%
D)	64.6%	35.4%	4.0%

A.

Option A

B.

Option B

C.

Option C

D.

Option D

83.

Use the information above to answer the following question. On a common size income statement for this year, what is the percentage that would be shown next to the dollar amount of cost of goods sold?

A.

76%

B.

24%

C.

31%

D.

18%

84.

On a common size balance sheet what is the percentage that would be shown next to the dollar amount of current assets?

A.

100%

B.

44%

C.

30%

D.

33%

85.

To perform a vertical analysis of an income statement, you would divide each line item on the statement by:

A.

sales.

B.	cost of goods sold.

C.	operating expenses.

D.	net income.