Use the following selected information from Wheeler,LLC to determine the 2017 and 2016 trend percentages for cost of goods sold using 2016 as the base.
$\begin{array}{|l|r|r|}
\hline&2017&2016\
\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \
\hline \text { Cost of goods sold } & 151,900 & 129,590 \
\hline \text { Operating expenses } & 55,240 & 53,240 \
\hline \text { Net earnings } & 27,820 & 19,820\
\hline
\end{array}$

A) 36.4% for 2017 and 41.1% for 2016.
B) 55.0% for 2017 and 56.0% for 2016.
C) 119.4% for 2017 and 100.0% for 2016.
D) 117.2% for 2017 and 100.0% for 2016.
E) 65.1% for 2017 and 64.6% for 2016.

Question

Use the following selected information from Wheeler,LLC to determine the 2017 and 2016 trend percentages for cost of goods sold using 2016 as the base.
$\begin{array}{|l|r|r|}
\hline&2017&2016\
\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \
\hline \text { Cost of goods sold } & 151,900 & 129,590 \
\hline \text { Operating expenses } & 55,240 & 53,240 \
\hline \text { Net earnings } & 27,820 & 19,820\
\hline
\end{array}$

A) 36.4% for 2017 and 41.1% for 2016.
B) 55.0% for 2017 and 56.0% for 2016.
C) 119.4% for 2017 and 100.0% for 2016.
D) 117.2% for 2017 and 100.0% for 2016.
E) 65.1% for 2017 and 64.6% for 2016.

Quizplus · Accepted Answer

The trend percentage for cost of goods sold is calculated by dividing the current year's cost of goods sold by the base year's cost of goods sold and multiplying the result by 100. For 2017, the trend percentage is 151,900 / 129,590 * 100 = 117.2%. For 2016, the trend percentage is 129,590 / 129,590 * 100 = 100.0%.

Use the Following Selected Information from Wheeler,LLC to Determine the 2017