ACC 556 Experience Tradition/ tutorialrank.com ACC 556 Experience Tradition/ tutorialrank.com | Page 59

Net Sales $ 240 Cost of Goods Sold 80 Gross Profit 160 Operating Expenses 65 Net Income $ 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 $ 400,000 Stockholders ‘ equity — common 200,000 Total stockholders ‘ equity 280,000 Sales revenue 120,000 Net income 25,000 Number of shares of common stock 8,000 Common dividends 9,000 Preferred dividends 6,000 What is Marsh ‘ s payout ratio ? Question 14 A flexible budget Question 15