\"The following is a summary of information presented on the income statement of
ID: 2473766 • Letter: #
Question
"The following is a summary of information presented on the income statement of HR Flowers for December 31, 2007. (See below)
What would vertical anlaysis report with respect to 2007 selling and general expenses?
The following is a summary of information presented on the income statement of HR Flowers for December 31, 2007 2007 2006 ccount Net sales revenue Cost of $487,000 100.00%)$500,000 330,000| 67.76% oods sold Gross 157,000| 32.24%) 105,000 rofit Selling and general expenses Net ncome before income tax expense Income 70.0001 14.37% 50,000 87,000| 17.86%) 55,000 0001 4.93%) 16,500 ax expense Net ncome $63,000 12.94%) $38,500 What would vertical analysis report with respect to 2007 selling and general expenses? Answer/response: Vertical analysis would report a 40.00 percent decrease in selling and general expenses Vertical analysis would report selling and general expenses as 14.37 percent of net sales revenue Vertical analysis would report a 40.00 percent increase in selling and general expenses Vertical analysis would report selling and general expenses as 10.00 percent of net sales revenueExplanation / Answer
Ans)
B) Vertical analysis would report selling and general expenses as 14.37 percent of net sales revenue.
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