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The vertical analysis statement of Nobell Inc. is shown as below
Nobell Inc.
Comparative Income Statement
Years Ended December 31st, 2015 and 2014
Percent of Percent of
(In millions) 2016 Total 2015 Total
Net Sales $6,355 100.0% $4,920 100.0%
Cost of Goods Sold 3,370 53.0 2,200 44.7
Gross Profit $2,985 47.0 $2,720 55.3
Operating Expenses
Selling Expenses $675 10.6 $580 11.8
Administrative Expenses $410 6.5 425 8.6
Total Expenses $1,085 17.1 $1,005 20.4
Operating Income $1,900 29.9 $1,715 34.9
Other Revenues and (Expenses)
Interest Revenue 0 0 0 0
Interest Expense (400) (6.3) (695) (14.1)
a. gross profit is increased by 47.0% over the previous year
b. gross profit is 47.0% of cost of goods sold
c. gross profit is equal to 47.0% of net income
d. gross profit is 47.0% of net sales revenue
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