Salamagundi, Inc. has the following Income Statement (in millions): SALAMAGUNDI, INC.
Income Statement
For the Year Ended December 31, 2014
$\begin{array}{lr}
\text { Net Sales } & \$ 160 \
\text { Cost of Goods Sold } & 90 \
\text { Gross Profit } & 70 \
\text { Operating Expenses } & \$ 40 \
\text { Net Income } & \$ 30
\end{array}$ Using vertical analysis, what percentage is assigned to gross profit?

Question

Quizplus · Accepted Answer

Gross Profit is 70 million, and Net Sales is 160 million. So, Gross Profit is 70/160 * 100 = 43.75% of Net Sales.

Salamagundi, Inc Using Vertical Analysis, What Percentage Is Assigned to Gross Profit