Oglethorpe Company reports the following information from the vertical analysis of their income statement: Which of the following statements could be logically concluded from the above data?

Question

Oglethorpe Company reports the following information from the vertical analysis of their income statement:  Which of the following statements could be logically concluded from the above data?

Quizplus · Accepted Answer

The vertical analysis shows that the gross profit margin increased from 12.1% in 2013 to 13.4% in 2014, indicating an improvement in the profit the company makes per dollar of sales. However, the analysis does not provide information about the total net income or whether it increased or decreased from 2013 to 2014. Therefore, options A, B, and D cannot be concluded from the given data.

Oglethorpe Company Reports the Following Information from the Vertical Analysis