Question
The income statement of Small Town, Inc. is as shown below: Small Town, Inc. Comparative Income Statement Year Ended December 31, 2025 (In millions)
The income statement of Small Town, Inc. is as shown below: Small Town, Inc. Comparative Income Statement Year Ended December 31, 2025 (In millions) Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses $ 7,000 3,100 3,900 600 400 Administrative Expenses 1,000 Total Operating Expenses Operating Income 2,900 Other Income and (Expenses): Interest Expense (400) Total Other Income and (Expenses) (400) Income Before Income Taxes 2,500 1,000 Income Tax Expense $ 1,500 Net Income Performing a vertical analysis, what is the percentage of Income Before Income Taxes to Net Sales? A. 35.71% OB. 44.29% OC. 21.43% OD. 55.71%
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