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:

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