58 TESTCO INC Income Statement in millions For the Year Ende

58 TESTCO, INC. Income Statement (in millions) For the Year Ended December 31, 2017 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income For vertical analysis, a common-size income statement would show cost of goods sold at? $150 90 60 40 $ 20 a. b. ?. d. 450% 167% 60% No percent be computed from the data provided.

Solution

Cost of goods sold = $90

Net sales = $150

For vertical analysis a common size income statement would show cost of good sold at

                                         = $90/$150 = 60%

Ans is option C