Selected information about The Staccato Company for the current year and prior year is given below
Account Current Prior
Net sales revenue $648,000 $595,000
Cost of goods sold $401,760 $425,000
Gross profit $246,240 $170,000
Selling/general expenses $142,560 $93,500
Net income before tax $103,680 $76,500
Income tax $32,400 $22,800
Net income $71,280 $53,700
The current year's cost of goods sold percentage (as would be found on a vertical analysis of the income statement for the current year) is
A) 94.53%.
B) 67.52%.
C) -5.47%.
D) 62.00%.
D
Explanation: D)
COGS $401,760 / 648,000 sales = 62%
You might also like to view...
Which of the following is NOT a likely reason for companies to act more ethically?
A) Consumer boycotts may result from unethical corporate behavior. B) Irresponsible and unethical actions may lead to legal problems for MNEs. C) Unethical or irresponsible behavior can negatively impact employee morale. D) The U.N. Global Compact enforces fines on global firms that fail to act ethically.
Checking inventory is an example of a(n):
A) software function. B) system function. C) database. D) business process.