Pittsburgh Motors Has Sales of $4,300, Net Income of $320

Multiple Choice

Pittsburgh Motors has sales of $4,300, net income of $320, total assets of $4,800, and total equity of $2,950. Interest expense is $65. What is the common-size statement value of the interest expense?

A) 0.89 percent
B) 1.51 percent
C) 1.69 percent
D) 2.03 percent
E) 1.35 percent