Using vertical analysis, what percentage is assigned to Net Income?

Question

Quizplus · Accepted Answer

Vertical analysis assigns each item in the income statement as a percentage of total revenues. Since net income is the last item on the income statement, it represents the residual amount that remains after all expenses are deducted from revenues. Therefore, its percentage is calculated by subtracting the total percentage of expenses from 100%, which in this case is 18%.

Using Vertical Analysis, What Percentage Is Assigned to Net Income