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Question 12
Cochran Corporation, Inc. has the following income statement (in
millions):
COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2014
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Net Income

$240
80
160
65
$ 95

Using vertical analysis, what percentage is assigned to net income?
Question 13
The following information pertains to Marsh Company. Assume that
all balance sheet amounts represent average balance figures.
Total asset
Stockholders‘ equity—common
Total stockholders‘ equity
Sales revenue
Net income
Number of shares of common stock
Common dividends
Preferred dividends
What is Marsh‘s payout ratio?
Question 14
A flexible budget
Question 15

$400,000
200,000
280,000
120,000
25,000
8,000
9,000
6,000