Question

Saira, Inc. has the following income statement (in millions): SAIRA, INC. Income Statement For the Year Ended December 31, 2017, Net Sales $300 Cost of Goods Sold 180 Gross Profit 120 Operating Expenses 45 Net Income $75. Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Answer 1

60%

Step-by-step explanation:

To calculate the percentage assigned to cost of goods sold , we should use the formula:

`=(Cost Of Goods Sold)/(Sales)`

`= (180)/(300)`

`= 0.60` = 60%

Therefore, the percentage assigned to Cost of goods sold is 60%