Answer to Question #5659 in Finance for LaMarcus Streeter

Question #5659
In vertical analysis, the base amount for each income statement item is

net sales.

net income.

sales.

gross profit.
1
Expert's answer
2011-12-16T09:24:04-0500
In vertical analysis the base amount for each income statement item is net
sales. In each column of income statement the net sales figure is used as 100
percent. Every amount in the column is expressed as a percentage of net sales.
To compute an item’s percentage of net sales, the amount of that item should be
divided by the amount of net sales.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS