Saira, Inc. has the following income statement (in millions): Using vertical analysis, what percentage is assigned to Net Income?

Question

Saira, Inc. has the following income statement (in millions):  Using vertical analysis, what percentage is assigned to Net Income?

Quizplus · Accepted Answer

To calculate the percentage assigned to Net Income using vertical analysis, we divide Net Income by Total Revenue and multiply by 100. In this case, Net Income is $7 million and Total Revenue is $28 million, so the calculation is (7/28) x 100 = 25%. Therefore, the correct answer is choice C.