Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively? Net Sales Revenue$649,000 Cost of Sales 431,000 Gross Profit 218,000 Operating and Other Expenses 88,500 Interest Expense 32,500 Income Tax Expense 35,500 Net Income$61,500 Cost of SalesGross ProfitInterest ExpenseA) 73.4% 100.0% 16.3% B) 49.7% 60.7% 39.7% C) 100.0% 50.6% 8.2% D) 66.4% 33.6% 5.0% Multiple Choice Option B Option C Option A Option D

Name: Stockton Co. prepared its income statement containing the information
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively? Net Sales Revenue$649,000 Cost of Sales 431,000

Vertical analysis is the one which helps the entity to determine the percentage of all the items…

Answered: Stockton Co. prepared its income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively?


Net Sales Revenue	$	649,000
Cost of Sales		431,000
Gross Profit		218,000
Operating and Other Expenses		88,500
Interest Expense		32,500
Income Tax Expense		35,500
Net Income	$	61,500

	Cost of Sales	Gross Profit	Interest Expense
A)		73.4	%	100.0	%	16.3	%
B)		49.7	%	60.7	%	39.7	%
C)		100.0	%	50.6	%	8.2	%
D)		66.4	%	33.6	%	5.0	%

Multiple Choice

Option B
Option C
Option A
Option D

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