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 compares each line item on the financial statement to a base amount, which is typically total revenue or net sales revenue. In this case, net sales revenue would be the base amount for vertical analysis. Therefore, option D is the correct choice. Options A and C involve calculations and do not relate to the concept of vertical analysis. Option B is completely unrelated to the information provided by Ferrero Company.

Ferrero Company Reported the Following Information for the Current Year