The following information is provided from EZ Electronics' annual report for the years ended December 31:

-Refer to the EZ Electronics annual report above.Using vertical analysis,2012 income tax expense would be represented as ________.
A)19%
B)100%
C)30%
D)8%

Question

The following information is provided from EZ Electronics' annual report for the years ended December 31:

-Refer to the EZ Electronics annual report above.Using vertical analysis,2012 income tax expense would be represented as ________.
A)19% 
B)100% 
C)30% 
D)8%

Quizplus · Accepted Answer

Vertical analysis involves expressing each item in a financial statement as a percentage of a base figure. In an income statement, each item is typically expressed as a percentage of sales. If the income tax expense is 8% of the total sales, then it would be represented as 8% in vertical analysis.

The Following Information Is Provided from EZ Electronics' Annual Report