Manero Company included the following information in its annual report:
$\begin{array}{lrrr}&2014&2013&2012\
\text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \
\text { Cost of goods sold } & 115,000 & 102,500 & 100,000 \
\text { Operating expenses } & 50,000 & 50,000 & 45,000 \
\text { Net income } & 13,400 & 10,000 & 10,500
\end{array}$
-In a common size income statement for 2014,the cost of goods sold is expressed as
A)64.5%
B)100.0%
C)112.3%
D)130.0%

Question

Quizplus · Accepted Answer

In a common size income statement, each item is expressed as a percentage of sales. For 2014, the cost of goods sold is $115,000 and sales are $178,400. The calculation is $115,000 / 178,400 = 0.6447$, or 64.5% when expressed as a percentage.

Manero Company Included the Following Information in Its Annual Report