Reference no: EM132796300

Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2010

Net Sales $200

Cost of Goods Sold 120

Gross Profit 80

Operating Expenses 44

Net Income $ 36

Problem 1: Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

Select one:

a. 40%

b. 60%

c. 100%

d. 70%

Problem 2: if quick ratio changed from 2.2 times in 2018 into 1.5 times in 2019. which of the following statements is true

Select one:

a. the change in 2019 is favourable

b. the change is unfavourable

c. it is not good as it is below the norm