Use the following selected information from Farris,LLC to determine the Year 2 and Year 1 common size percents for cost of goods sold using Year 1 net sales as the base.
A)36.4% for Year 2 and 41.1% for Year 1.
B)55.0% for Year 2 and 56.0% for Year 1.
C)119.4% for Year 2 and 100.0% for Year 1.
D)117.2% for Year 2 and 100.0% for Year 1.
E)65.1% for Year 2 and 64.6% for Year 1.

Question

Use the following selected information from Farris,LLC to determine the Year 2 and Year 1 common size percents for cost of goods sold using Year 1 net sales as the base. 
A)36.4% for Year 2 and 41.1% for Year 1. 
B)55.0% for Year 2 and 56.0% for Year 1. 
C)119.4% for Year 2 and 100.0% for Year 1. 
D)117.2% for Year 2 and 100.0% for Year 1. 
E)65.1% for Year 2 and 64.6% for Year 1.

Quizplus · Accepted Answer

Year 2: $151,900/$276,200 * 100 = 55.0%
Year 1: $129,590/$231,400 * 100 = 56.0%

Use the Following Selected Information from Farris,LLC to Determine the Year