Question

To follow is selected information about the Little Dipper Company for the current year and prior year Account Net sales revenue Cost of goods sold Gross profit Selling/general expenses Net income before tax Income tax Net income Current $648,000 $414,720 $233,280 $149,040 $84,240 $25,120 $59,120 Prior $595,000 $425,000 $170,000 $93,500 $76,500 $22,800 $53,700 What is the current years net income percentage (as would be found on a vertical analysis of the income statement for the current year)? A. 70.18% B. 235.35% С. 9.12% D, 10.09%

Answer 1

Answer: D- 9.12%

Explanation:The current net income percentage is calculated thus:

Current year net income = $59,120

Prior year net income = $53,700

diff in btw the two period = $59, 120-$53,700 = $5,420

current year net income percentage = $5,420/$59,120 = 0.0912779 *100

= 9.12%