Vertical Analysis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Compute the missing items in the following. Show your complete solutions at the back of this paper
or in a separate sheet of paper.
Transcribed Image Text:NRICHMENT
> Compute the missing items in the following. Show your complete solutions at the back of this paper
or in a separate sheet of paper.
Vertical Analysis
Account
Amount
Percent
Sales
62,500
20%
Cost of Sales
Gross Profit
Operating Expenses
Net Operating Profit
Interest Expense
Net Profit
12%
4%
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Formula to compute the sales
VIEWComputation of Sales
VIEWComputation of Gross Profit and percentage of Gross Profit
VIEWComputation of Net Operating Profit
VIEWComputation of Operating Expenses and percentage of Operating Expenses
VIEWComputation of Net Profit
VIEWComputation of Interest Expense and percentage of Interest Expense
VIEWAnswer
VIEW
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