Multiple Choice
Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 common size percents for operating expenses using Year 1 net sales as the base.
A) 36.4% for Year 2 and 41.1% for Year 1.
B) 55.0% for Year 2 and 56.0% for Year 1.
C) 119.4% for Year 2 and 100.0% for Year 1.
D) 103.8% for Year 2 and 100.0% for Year 1.
E) 20.0% for Year 2 and 23.0% for Year 1.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: Total asset turnover reflects a company's ability
Q30: Vertical analysis is a tool to evaluate
Q39: The building blocks of financial statement analysis
Q54: _ is a method of analysis used
Q104: Selected current year company information follows: Total
Q108: Dividing accounts receivable, net by net sales
Q110: Calculate the percent increase or decrease for
Q111: Dividing ending inventory by cost of goods
Q114: Financial analysis only refers to the communication
Q218: Identify and explain the four building blocks