Question
You would like to review the business performance this year using vertical analysis. Which of the following comparisons presents the results of an examination of
You would like to review the business performance this year using vertical analysis. Which of the following comparisons presents the results of an examination of the balance sheet assets category?
Cost of goods sold decreased from 69.8% of net sales last year to 65% this year even though the absolute value increased $40,000.
Net income increased from 9.4% of net sales last year to 10% this year when the absolute value increased $10,000.
Net income decreased from 11.4% of total assets last year to 8% this year even though the absolute value increased $20,000.
Inventory decreased from 20.7% of total assets last year to 18.5% this year even though the absolute value increased $32,500.
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