Answer to Question #5659 in Finance for LaMarcus Streeter
In vertical analysis, the base amount for each income statement item is
In vertical analysis the base amount for each income statement item is net sales. In each column of income statement the net sales figure is used as 100 percent. Every amount in the column is expressed as a percentage of net sales. To compute an item’s percentage of net sales, the amount of that item should be divided by the amount of net sales.