Ronaldo Soccer Shop's income statement reports sales of $100,000;cost of goods sold of $46,000,operating expenses of $34,000,interest expense of $15,000,income tax expense of $2,000,and net income of $3,000.If you were to perform a vertical analysis of this income statement,you would divide each of these income statement line items by:

Question

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A vertical analysis involves expressing each item on the income statement as a percentage of sales. Since sales are the base or 100%, we divide each item by sales ($100,000).

Ronaldo Soccer Shop's Income Statement Reports Sales of $100,000;cost of Goods