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Evgen [1.6K]
3 years ago
14

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%
Business
1 answer:
Alex787 [66]3 years ago
5 0

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%

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