Saira Inc. has the following income statement (in millions) : $\begin{array}{c}\text{SAIRA, INC}\\ \text{Income Statement}\\ \text{ For the Year Ended December 31,2017}\\ \begin{array}{lr}\text{ Net Sales }& \$300\\ \text{ Cost of Goods Sold }& 180\\ \text{ Gross Profit }& 120\\ \text{ Operating Expenses }& 45\\ \text{ Net Income }& \$75\end{array}\end{array}$ Using vertical analysis what percentage is assigned to Net Income?

A) 625%
B) 40%
C) 25%
D) None of these answer choices are correct.

Vertical Analysis

A financial statement analysis method that lists each line item as a percentage of a base figure within the same statement.

Net Income

The total earnings of a company after subtracting all expenses from revenue.

Income Statement

The Income Statement is a financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.