The following information is taken from the financial statements of Clybourn Company for the current year: $\begin{array}{lr}
\text { Current Assets } & \$ 32,000 \
\text { Total Assets } & 1,424,000 \
\text { Cost of Goods Sold } & 1,040,000 \
\text { Gross Profit } & 320,000 \
\text { Net Income } & 192,000
\end{array}$ On a common size income statement for the year,what is the percentage that would be shown next to the dollar amount of sales revenue?
A)100%
B)14%
C)60%
D)Cannot be determined

Question

Quizplus · Accepted Answer

Sales revenue is calculated as Cost of Goods Sold plus Gross Profit, which equals $1,360,000. On a common size income statement, sales revenue is always shown as 100%.

The Following Information Is Taken from the Financial Statements of Clybourn