Ferrero Company reported the following information for the current year: With respect to current year net sales revenue, what would a vertical analysis report?

Question

Ferrero Company reported the following information for the current year:  With respect to current year net sales revenue, what would a vertical analysis report?

Quizplus · Accepted Answer

Vertical analysis involves expressing each line item as a percentage of a base amount, which in this case would be the net sales revenue. Therefore, the net sales revenue would be the base amount and all other line items would be expressed as a percentage of it. Choices A and C are irrelevant and choice B is not related to the given information.

Ferrero Company Reported the Following Information for the Current Year