Metlock, Inc.has the following Income Statement (in millions):

METLOCK, INC.

Income Statement

For the Year Ended December 31, 2023Net Sales$200Cost of Goods Sold148Gross Profit52Operating Expenses46Net Income$6

Using vertical analysis, what percentage is assigned to gross profit?

100%

26.0%

74.0%

35.1%

Given the following data for theKingbird, Inc.:

Current liabilities$580Long-term debt450Common stock520Retained earnings1050Total liabilities & stockholders' equity$2600

How would common stock appear on a common size balance sheet?

46%

22%

12%

Blue Spruce Corp.reported net sales of $651000, $726000, and $781200in the years 2021, 2022, and 2023, respectively. If 2021 is the base year, what percentage do 2023 sales represent of the base?

83%

20%

120%

108%

Assume the following sales data for a company:

2023$97200020228760002021700800

If 2021 is the base year, what is the percentage increase in sales from 2021 to 2022?

25%

139%

125%

39%

The following schedule is a display of what type of analysis?

Amount Percent Current assets$100,00025%Property, plant, and equipment 300,00075%Total assets $400,000100%

Differential analysis

Vertical analysis

Ratio analysis

Horizontal analysis

The use of alternative accounting methods

may be a problem in ratio analysis even if disclosed.

is only a problem in ratio analysis with respect to inventory.

is not a problem in ratio analysis since eventually all methods will lead to the same end.

is not a problem in ratio analysis because the footnotes disclose the method used.

An income statement would not include

dividends paid.

discontinued operations.

income from operations.

other revenue and gains.

Which one of the following is not a tool in financial statement analysis?

Circular analysis

Horizontal analysis

Ratio analysis

Vertical analysis

If Year 1 sales equal$750, Year 2 sales equal$1500, and Year 3 sales equal$930, the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is

50%.

62%.

200%.

124%.

Larkspur, Inc.has an investment in trading securities of $164000. This investment experienced an unrealized loss of $9400during the current year. Assuming a35% tax rate, the amount of this loss that would reported as part of other comprehensive income would be:

$57400loss.

$106600loss.

None.

$164000loss.