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13 January, 02:41

CoronadoCorporation, Inc. has the following income statement (in millions) : Coronado Corporation, Inc. Income Statement For the Year Ended December 31, 2017 Net Sales $340 Cost of Goods Sold 224 Gross Profit 116 Operating Expenses 65 Net Income $ 51 Using vertical analysis, what percentage is assigned to net income?

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  1. 13 January, 03:45
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    15 percent

    Explanation:

    Given that,

    For the Year Ended December 31, 2017

    Net Sales = $340

    Cost of Goods Sold = $224

    Operating Expenses = $65

    Net Income = $51

    Under vertical analysis, all the items are represented as a percentage of net sales.

    Therefore, the percentage assigned to net income is determined as follows:

    = (Net Income : Net sales) * 100

    = ($51 : $340) * 100

    = 0.15 * 100

    = 15%
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