The income statement of Small Town, Inc. is as shown below: Small Town, Inc. Comparative Income Statement Year Ended December 31, 2025 (In millions) Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income $7,800 4,300 3,500 600 400 1,000 2,500 (400) (400) 2,100 1,000 $1,100 Performing a vertical analysis, what is the percentage of Cost of Goods Sold to Net Sales? 55.13% 14.10% 44.87% 26.92%

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