The vertical analysis statement of Nobell Inc. is shown as below

Nobell Inc.

Comparative Income Statement

Years Ended December 31^st, 2015 and 2014

Percent of Percent of

(In millions) 2016 Total 2015 Total

Net Sales $6,355 100.0% $4,920 100.0%

Cost of Goods Sold 3,370 53.0 2,200 44.7

Gross Profit $2,985 47.0 $2,720 55.3

Operating Expenses

Selling Expenses $675 10.6 $580 11.8

Administrative Expenses $410 6.5 425 8.6

Total Expenses $1,085 17.1 $1,005 20.4

Operating Income $1,900 29.9 $1,715 34.9

Other Revenues and (Expenses)

Interest Revenue 0 0 0 0

Interest Expense (400) (6.3) (695) (14.1)

a. gross profit is increased by 47.0% over the previous year

b. gross profit is 47.0% of cost of goods sold

c. gross profit is equal to 47.0% of net income

d. gross profit is 47.0% of net sales revenue