In performing a vertical analysis for a merchandising company, the base for sales on the income statement is
A) net sales.
B) total revenues.
C) profit.
D) cost of goods available for sale.

Question

Quizplus · Accepted Answer

In a vertical analysis of an income statement for a merchandising company, net sales are typically used as the base figure against which all other items are compared to calculate each item's proportion of net sales. This helps in understanding the relative size of each item in relation to net sales.

In Performing a Vertical Analysis for a Merchandising Company, the Base