20) In performing a vertical analysis, the base for interest expense is: A) net sales. B) total...

20) In performing a vertical analysis, the base for interest expense is:

A) net sales.

B) total operating expenses.

C) net income.

D) interest income.

21) Given the following data:

Current liabilities	$450,000
Noncurrent liabilities	650,000
Stockholders' equity	500,000

In vertical analysis, current liabilities would be expressed as:

A) 356%.

B) 90%.

C) 111%.

D) 28%.

22) In performing a vertical analysis, the base for sales returns and allowances is:

A) sales discounts.

B) sales.

C) gross profit.

D) net sales.

23) In performing a vertical analysis, the base for cost of goods sold is:

A) net sales.

B) total revenues.

C) total expenses.

D) gross profit.

24) Given the following data:

Cash	$225,000
Current assets	970,000
Total assets	2,105,000

In a vertical analysis, cash would be expressed as:

A) 935%.

B) 217%.

C) 46%.

D) 11%.

25) If a balance sheet is subjected to vertical analysis which shows that current assets (using total assets as the base) have increased from 42% to 56%, this would always mean that:

A) current assets have increased as a percentage of total assets.

B) the dollar amount of total assets has increased.

C) the dollar amount of total assets has decreased.

D) the dollar amount of current assets has increased.

26) Given the following data:

Net sales	200,000
Cost of goods sold	120,000
Gross profit	80,000

In a vertical analysis, cost of goods sold would be expressed as:

A) 166%.

B) 40%.

C) 60%.

D) 250%.

27) Given the following data:

Net sales	200,000
Cost of goods sold	120,000
Gross profit	$80,000
Operating expenses	44,000
Net income	36,000

In a vertical analysis, net income would be expressed as:

A) 18%.

B) 45%.

C) 30%.

D) 82%.

28) If the assets shown on a balance sheet are subjected to vertical analysis (using total assets as the base), an increase in the figure for current assets from 56% to 60% would always mean that:

A) the dollar amount of noncurrent assets has increased.

B) the dollar amount of total assets has increased.

C) total current assets have increased as a percentage of total assets.

D) the dollar amount of current assets has increased.