Cochran Corporation, Inc. has the following income statement (in millions): COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2014
$\begin{array}{lr}
\text { Net Sales } & \$ 240 \
\text { Cost of Goods Sold } & 80 \
\text { Gross Profit } & 160 \
\text { Operating Expenses } & 65 \
\text { Net Income } & \$ 95
\end{array}$ Using vertical analysis, what percentage is assigned to cost of goods sold?

Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in the income statement as a percentage of net sales. Cost of Goods Sold is $80, and Net Sales is $240. The percentage is calculated as ($80 / $240) * 100% = 33%.

Cochran Corporation, Inc Using Vertical Analysis, What Percentage Is Assigned to Cost of COCHRAN