Use the following selected information from Wheeler,LLC to determine the 2018 and 2017 common size percentages for cost of goods sold using Net sales as the base. $\begin{array}{lrrl}
&2018&&2017\
Net ~sales&\$ 276,200& & \$ 231,400 \
Cost ~of ~goods ~sold&151,90 0 & & 129,590 \
Operatirg ~expenses&55,240 & & 53,240 \
Net ~earmirgs&27,820 & & 19,820
\end{array}$
A)36.4% for 2018 and 41.1% for 2017.
B)55.0% for 2018 and 56.0% for 2017.
C)119.4% for 2018 and 100.0% for 2017.
D)117.2% for 2018 and 100.0% for 2017.
E)65.1% for 2018 and 56.0% for 2017.

Question

Quizplus · Accepted Answer

To calculate the common size percentages for cost of goods sold, divide the cost of goods sold by net sales for each year. For 2018: $151,900 / 276,200 = 0.55$ or 55.0%. For 2017: $129,590 / 231,400 = 0.56$ or 56.0%.

Use the Following Selected Information from Wheeler,LLC to Determine the 2018