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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses 84,500 Interest Expense 28,500 33,500 Income Tax Expense Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense 15.1% A) B) c) D) 74.1% 100.0% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% 65.4% 34.6% 4.4%

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 $641,000 Cost of Sales 419,000 Gross Profit 222,000 Operating and Other Expenses 84,500 Interest Expense 28,500 33,500 Income Tax Expense Net Income $ 75,500 Cost of Sales Gross Profit Interest Expense 15.1% A) B) c) D) 74.1% 100.0% 48.6% 58.5% 38.3% 100.0% 53.0% 8.0% 65.4% 34.6% 4.4%

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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