Use the following selected information from Farris,LLC to determine the Year 2 and Year 1 common size percents for operating expenses 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)103.8% for Year 2 and 100.0% for Year 1.
E)20.0% for Year 2 and 23.0% for Year 1.

Question

Use the following selected information from Farris,LLC to determine the Year 2 and Year 1 common size percents for operating expenses 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)103.8% for Year 2 and 100.0% for Year 1. 
E)20.0% for Year 2 and 23.0% for Year 1.

Quizplus · Accepted Answer

Year 2: $55,240/$276,200 * 100 = 20.0%
Year 1: $53,240/$231,400 * 100 = 23.0%

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