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max2010maxim [7]
3 years ago
7

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of good

s sold using Net sales as the base. 2017 2016 Net sales $ 604,200 $ 487,400 Cost of goods sold 241,900 137,390 Operating expenses 88,240 85,040 Net earnings 44,620 31,620
Business
1 answer:
NISA [10]3 years ago
4 0

Answer: 2016 = 28.18 %

2017 = 40.03 %

Explanation:  Cost of goods sold as a percentage of net sales can be calculated as follows :-

percentage=\frac{cost\:of\:goods\:sold}{net\:sales}

so by putting the values into equation for the two years :-

year 2016

percentage=\frac{137,390}{487,400}

=  28.18 %

year 2017

percentage=\frac{241,900}{604,200}

= 40.03 %

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