Darius, Inc.has the following income statement (in millions): DARIUS, INC.
Income Statement
For the Year Ended December 31, 2013
$\begin{array}{lr}
\text { Net Sales } & \$ 300 \
\text { Cost of Goods Sold } & 120 \
\text { Gross Profit } & 180 \
\text { Operating Expenses } & \$ 44 \
\text { Net Income } & \$ 136
\end{array}$
-Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Question

Darius, Inc.has the following income statement (in millions): DARIUS, INC.
Income Statement
For the Year Ended December 31, 2013
$\begin{array}{lr}
\text { Net Sales } & \$ 300 \
\text { Cost of Goods Sold } & 120 \
\text { Gross Profit } & 180 \
\text { Operating Expenses } & \$ 44 \
\text { Net Income } & \$ 136
\end{array}$ 
-Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in the income statement as a percentage of net sales. Cost of Goods Sold is $120, and Net Sales is $300. The percentage is calculated as ($120 / $300) * 100% = 40%.

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