In a vertical analysis, operating expenses would be represented as:O 11.4%23.3%59.3%32.6% Year ended December 31, 20xxRevenueCost of goods soldOperating expensesInterest expenseIncome tax expenseNet IncomeBalance SheetDecember 31, 20xxCashAccounts receivableInventoryProperty, plant, and equipment, netTotal assetsAccounts payableSalaries payableNote payable, due in 5 yearsCommon stockRetained earningsTotal liabilities and stockholders' equity :$86,00035,00020,0001.0002.000$ 28,000$ 45,00025,0006,000100,000$ 176.000$17,0005,00019,00060,00075,000$176,000

In a vertical analysis one item is selected as base figure and each individual line item is…

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In a vertical analysis, operating expenses would be represented as: O 11.4% 23.3% O 59.3 % O 32.6%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

In a vertical analysis, operating expenses would be represented as:
O 11.4%
23.3%
59.3%
32.6%

Year ended December 31, 20xx
Revenue
Cost of goods sold
Operating expenses
Interest expense
Income tax expense
Net Income
Balance Sheet
December 31, 20xx
Cash
Accounts receivable
Inventory
Property, plant, and equipment, net
Total assets
Accounts payable
Salaries payable
Note payable, due in 5 years
Common stock
Retained earnings
Total liabilities and stockholders' equity :
$86,000
35,000
20,000
1.000
2.000
$ 28,000
$ 45,000
25,000
6,000
100,000
$ 176.000
$17,000
5,000
19,000
60,000
75,000
$176,000

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