Question

Sunland Corporation, Inc. has the following income statement (in millions): Sunland Corporation, Inc. Income Statement For the Year Ended December 31, 2017 Net Sales $220 Cost of Goods Sold 121 Gross Profit 99 Operating Expenses 55 Net Income $ 44 Using vertical analysis, what percentage is assigned to net income?

Answer 1

Net income % = Net income/Sales x 100

Ne income % = $44/$220 x 100

Net income % = 20%

Step-by-step explanation:

Using vertical analysis, net income % is equal to the ratio of net income to sales multiplied by 100.