Q27:

Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2010

Net Sales $200

Cost of Goods Sold 120

Gross Profit 80

Operating Expenses 44

Net Income $ 36

Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Select one:

a.

70%

b.

60%

c.

100%

d.

40%

Q28:

X Co. has the following information:

Sale $ 1,200,000

Cost of sales $800,000

Operating expenses $200,000

current liabilities $120,000

Non-current liabilities $200,000

share capital $ 500,000

Retained earnings $ 300,000

the operating margin ratio is

a.

20%

b.

17%

c.

34%

d.

3 x