Question

Bramble, Inc. has the following Income Statement (in millions):

Bramble, Inc. Income Statement For the Year Ended December 31, 2017
Net Sales $330
Cost of Goods Sold 231
Gross Profit 99
Operating Expenses 43
Net Income $56

Requried:
Using vertical analysis, what percentage is assigned to cost of goods sold?

Answer 1

Answer: 70%

Step-by-step explanation:

Using Vertical analysis, the rest of the Income statement is described as a percentage of Net sales which means that Net sales is 100% and Cost of Goods sold would be:

= Cost of goods sold / Net sales

= 231 / 330

= 70%