Blanco, Inc. has the following income statement (in millions): BLANCO, INC.
Income Statement
For the Year Ended December 31, 2014
$\begin{array}{lr}
\text { Net Sales } & \$ 200 \
\text { Cost of Goods Sold } & 140 \
\text { Gross Profit } & 60 \
\text { Operating Expenses } & \$ 44 \
\text { Net Income } & \$ 16
\end{array}$ 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 $140, and Net Sales is $200. The percentage is calculated as ($140/$200) * 100% = 70%.

Blanco, Inc Using Vertical Analysis, What Percentage Is Assigned to Cost of INC