Shelcal Ltd provides the following data for the year 2016:
$$\begin{array} { | l | l | }
\hline \text { Sales revenue } & \$ 430,000 \
\hline \text { Sales returns and allowances } & 1300 \
\hline \text { Sales discounts } & 830 \
\hline \text { Net sales revenue } & \$ 427,870 \
\hline \text { Cost of sales } & \$ 259,000 \
\hline
\end{array}$$
On a vertical analysis report,cost of sales as a percentage of net sales will amount to:
A) 60.72%
B) 60.53%
C) 60.23%
D) 60.84%

Question

Shelcal Ltd provides the following data for the year 2016:
$$\begin{array} { | l | l | } 
\hline \text { Sales revenue } & \$ 430,000 \
\hline \text { Sales returns and allowances } & 1300 \
\hline \text { Sales discounts } & 830 \
\hline \text { Net sales revenue } & \$ 427,870 \
\hline \text { Cost of sales } & \$ 259,000 \
\hline
\end{array}$$
On a vertical analysis report,cost of sales as a percentage of net sales will amount to:
A) 60.72%
B) 60.53%
C) 60.23%
D) 60.84%

Quizplus · Accepted Answer

To calculate the cost of sales as a percentage of net sales, we need to divide the cost of sales by the net sales and then multiply by 100. From the provided information, the cost of sales for 2016 is not given, but we do have the net sales amount. Therefore, we cannot calculate the answer accurately. All the answer choices are very close to each other, and we cannot assume a value without any given information. Hence, the best choice is to skip the question.

Shelcal Ltd Provides the Following Data for the Year 2016