Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars gross margin has declined, cost of goods sold as a percentage of net sales has increased, and the dollar amount of cost of goods sold has increased
Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and is 70% in 2020. This would always indicate that: cost of goods sold as a percentage of net sales has increased the dollar amount of cost of goods sold has increased gross margin has declined in terms of dollars gross margin has declined, cost of goods sold as a percentage of net sales has increased, and the dollar amount of cost of goods sold has increased
Chapter2: International Flow Of Funds
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Problem 5IEE
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Transcribed Image Text:Assume you are using net sales as the base in vertical analysis. Cost of goods sold in 2019 is 67%, and
is 70% in 2020. This would always indicate that:
cost of goods sold as a percentage of net sales has increased
the dollar amount of cost of goods sold has increased
gross margin has declined in terms of dollars
gross margin has declined, cost of goods sold as a percentage of net sales has increased, and the dollar
amount of cost of goods sold has increased
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