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Stockton Co. prepared its income statement containing the information below. Using vertical analysis what percentages would apply to cost of sales, gross profit, and interest
Stockton Co. 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 Cost of Sales Gross Profit Operating and Other Expenses Interest Expense Income Tax Expense Net Income $675,000 470,000 205,000 101,500 45,500 42,000 $ 16,000 Cost of Sales Gross Profit A) B) C) D) 53.4% 100 . 0% 69. 6% 100.0% 68.0% 43. 6% 30 . 4% Interest Expense 20 . 5% 43. 8% 8.9% 6.7% Multiple Choice Option B Option C Option D Option A
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