LO 2. Vertical analysis, or the common-size analysis, is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount. Base amount is TOTAL ASSETS on the balance sheet and NET SALES on the Income statement. Thus, on the balance sheet, one might say that current assets are 32% of total assets (total assets being the base amount.) On an income statement one might say that marketing expenses are 57 of net sales (net sales being the base amount.) E.13-2. What % of assets were financed by equity as of the end of 2022? E.13-3. What is a gross profit and net (income) margins for Amazon in 2022?
LO 2. Vertical analysis, or the common-size analysis, is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount. Base amount is TOTAL ASSETS on the balance sheet and NET SALES on the Income statement. Thus, on the balance sheet, one might say that current assets are 32% of total assets (total assets being the base amount.) On an income statement one might say that marketing expenses are 57 of net sales (net sales being the base amount.) E.13-2. What % of assets were financed by equity as of the end of 2022? E.13-3. What is a gross profit and net (income) margins for Amazon in 2022?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 1MCQ
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LO 2. Vertical analysis, or the common-size analysis, is a technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount. Base amount is TOTAL ASSETS on the balance sheet and NET SALES on the Income statement. Thus, on the balance sheet, one might say that current assets are 32% of total assets (total assets being the base amount.) On an income statement one might say that marketing expenses are 57 of net sales (net sales being the base amount.) E.13-2. What % of assets were financed by equity as of the end of 2022? E.13-3. What is a gross profit and net (income) margins for Amazon in 2022?
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