Making Moves has the following data available.
Sales $800 000
Selling expenses 160 000
Profit 320 000
Using vertical analysis,express selling expenses as a percentage of the base amount.

Question

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base amount. Here, selling expenses are expressed as a percentage of sales. Selling expenses ($160,000) divided by sales ($800,000) equals 0.20, or 20%.

Making Moves Has the Following Data Available