Saira, Inc.has the following income statement (in millions): SAIRA, INC.
Income Statement
For the Year Ended December 31, 2017
$\begin{array}{lr}
\text { Net Sales } & \$ 300 \
\text { Cost of Goods Sold } & 180 \
\text { Gross Profit } & 120 \
\text { Operating Expenses } & 45 \
\text { Net Income } & \$ 75
\end{array}$ 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 $180 million, and Net Sales is $300 million. The percentage is calculated as ($180/$300) * 100% = 60%.

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