The following information is taken from the financial statements of a company for the current year:

-Use the information above to answer the following question.On a common size income statement for this year,what is the percentage that would be shown next to the dollar amount of cost of goods sold?
A) 76%
B) 24%
C) 31%
D) 18%

Question

The following information is taken from the financial statements of a company for the current year:
 
-Use the information above to answer the following question.On a common size income statement for this year,what is the percentage that would be shown next to the dollar amount of cost of goods sold?
A) 76% 
B) 24% 
C) 31% 
D) 18%

Quizplus · Accepted Answer

A common size income statement expresses each line item as a percentage of sales. If the cost of goods sold is 76% of sales, then 76% would be shown next to it on the common size income statement.

The Following Information Is Taken from the Financial Statements of a Company