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Ierofanga [76]
3 years ago
15

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 $522,200 $423,400
Cost of goods sold 219,400 135,440
Operating expenses 79,990 $77,090
Net earnings 40,420 28,670
a. 42.0% for 2017 and 32.0% for 2016.
b. 7.7% for 2017 and 6.8% for 2016.
c. 123.3% for 2017 and 100.0% for 2016.
d. 57.3% for 2017 and 50.2% for 2016.
e. 174.4% for 2017 and 199.2% for 2016.
Business
1 answer:
nikklg [1K]3 years ago
8 0

Answer:

a. 42.0% for 2017 and 32.0% for 2016

Explanation:

Common size % for cost of goods sold = Cost of goods sold/Net sales

<u>For 2017</u>

= $219,400 / $522,200

= 0.4201456

= 42%

<u>For 2016</u>

= $135,440 / $423,400

= 0.31988663

= 31.99%

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