Question

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for operating expenses using Net sales as the base.

2017 2016 Net sales $ 407,400 $ 333,800 Cost of goods sold 187,900 132,7

Answer 1

Answer:

19.8%; 16.8%

Explanation:

In 2016:

Common size percentages for operating expenses:

= (Operating expenses ÷ Net sales) × 100

= (65,960 ÷ $333,800) × 100

= 0.198 × 100

= 19.8%

In 2017:

Common size percentages for operating expenses:

= (Operating expenses ÷ Net sales) × 100

= ($68,440 ÷ $407,400) × 100

= 0.1680 × 100

= 16.8%

Note:

Table is missing in this question, so i have attached the missing table.