Use the following to answer questions

-If a vertical analysis were performed relative to the year ended December 31,2010,the figure that would appear in the percent column for Net income would be:
A)56.3%
B)33.6%
C)22.2%
D)21.1%

Question

Use the following to answer questions 
 
-If a vertical analysis were performed relative to the year ended December 31,2010,the figure that would appear in the percent column for Net income would be:
A)56.3% 
B)33.6% 
C)22.2% 
D)21.1%

Quizplus · Accepted Answer

In a vertical analysis, each item on a financial statement is listed as a percentage of another item. For the income statement, each item is typically presented as a percentage of sales or revenue. The percentage for net income would be calculated as (Net Income / Revenue) * 100. Without the specific figures from the income statement, the exact calculation can't be performed here, but the correct answer is based on the information provided in the question.

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