If a Firm's Common-Size Income Statement Shows That the Earnings

Multiple Choice

If a firm's common-size income statement shows that the earnings after tax percentage is too low, the firm may have spent too much money on ____.

A) total assets as a percentage of long-term liabilities
B) expenses as a percentage of current assets
C) cost of sales as a percentage of net sales
D) taxes paid as a percentage of stockholders' equity