The vertical analysis of the income statement for a company that has cost of goods sold of $39,000 and net sales of $106,000 will be 27.2%.

Name: The vertical analysis of the income statement for a company that has cost of goods sold of $39,000 and net sales of $106,000 will be 27.2%.
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Quizplus · Accepted Answer

To calculate vertical analysis, we divide each line item by the total revenue (in this case, net sales). Therefore, the cost of goods sold would be 39,000/106,000 = 36.8% and not 27.2%.

The Vertical Analysis of the Income Statement for a Company