24) Olivera Company provides the following data for the year 2013:
Net sales revenue$398,000
Cost of goods sold$255,000
Operating expenses$95,000
Income tax expense$9,000
On a vertical analysis, what percentage would be shown for net income?
A) 12.1%
B) 8.8%
C) 9.8%
D) 27.3%
25) Oglethorpe Company reports the following information from the vertical analysis of their income statement:
Net income:
4.2 % in 2014
3.9% in 2013
Which of the following statements could be logically concluded from the above data?
A) The company made a higher gross profit in 2014 than in 2013.
B) The company made higher net income in 2014 than in 2013.
C) The company has improved the profit they make per dollar of sales in 2014.
D) The company's total net income increased by 0.3% in 2014.
26) Oglethorpe Company reports the following information from the vertical analysis of their balance sheet:
Current assets:
23.5 % in 2014
23.9% in 2013
Which of the following statements could be logically concluded from the above data?
A) The company's current ratio declined.
B) The company's current assets declined in proportion to its total assets.
C) The company's ability to pay current liabilities declined.
D) The company's total current assets declined by 0.4%.
27) Please complete the vertical analysis of the income statement data shown on the form below:
(Dollar amounts in millions)
|
2014
|
|
Amount
|
% of total
|
Revenues
|
$6,355
|
|
Cost of revenues
|
3,370
|
|
Gross profit
|
2,985
|
|
Operating expenses:
|
|
|
Sales and marketing expense
|
675
|
|
General and administrative expense
|
410
|
|
Research and development expense
|
470
|
|
Other expense
|
400
|
|
Total operating expenses
|
$1,955
|
|
|
|
|
Income before income tax
|
$1,030
|
|
Income tax expense
|
230
|
|
Net income (loss)
|
$ 800
|
|
|
|
|