Final answer:
Net sales are represented by 100% in the vertical analysis of an income statement, where each line item is shown as a percentage of net sales.
Step-by-step explanation:
In financial analysis, net sales represented by 100% would typically appear in:
c) a horizontal analysis of an income statement
In a horizontal analysis of an income statement, various line items are presented as a percentage of a base year (usually the first year in the analysis). When net sales are represented as 100%, it means that other items in the income statement are expressed as a percentage of the net sales figure for that particular period.
Horizontal analysis allows for the comparison of financial data over time, showcasing the percentage change in each line item concerning a base year. This method is particularly useful for identifying trends, growth, or changes in the income statement items relative to net sales across different periods.