Question: Vertical analysis is a technique for evaluating financial statement data by expressing each item in a financial statement as a percent of a base amount

Vertical analysis is a technique for evaluating financial statement data by expressing each item in a financial statement as a percent of a base amount in that statement.

Given the following data for a company:

Sales Revenue $36,000
Cost of goods sold 24,080
Gross profit 11,920
Operating expenses 7,120
Net income $4,800

How would cost of goods sold appear on a common size income statement?

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