Saira, Inc. has the following income statement (in millions): $\begin{array}{c}
\text { SAIRA, INC. }\\text { Income Statement }\\text { For the Year Ended December 31, } 2017\
\begin{array}{lr}
\text { Net Sales } & \$ 300 \
\text { Cost of Goods Sold } & 180 \
\text { Gross Profit } & 120 \
\text { Operating Expenses } & 45\
\text { Net Income }&\$75
\end{array}\end{array}$ Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Question

Quizplus · Accepted Answer

In vertical analysis, each item is expressed as a percentage of net sales. Cost of Goods Sold is $180, and Net Sales is $300. The percentage is calculated as ($180/$300) * 100% = 60%.

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