Ramos Company Included the Following Information in Its Annual Report

question 57

Multiple Choice

Ramos Company included the following information in its annual report:
$\begin{array}{|l|l|l|l|}\hline & 2011 & 2010 & 2009 \\\hline \text { Sales } & \$ 178,400 & \$ 162,500 & \$ 155,500 \\\hline\text { Cost of goods sold } & 115,000 & 102,500 & 100,000 \\\hline\text { Operating expenses } & 50,000 & 50,000 & 45,000 \\\hline\text { Net incoume } & 13,400 & 10,000 & 10,500 \\\hline \end{array}$
- Refer to the information for Ramos Company. In a common size income statement for 2011, the cost of goods sold are expressed as:

• A) 130%
• B) 115%
• C) 64.5%
• D) 63.1%

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Definitions:

Sidewall

The side part of a tire that extends from the tread to the bead, providing lateral stability and protecting the carcass of the tire.

Dry Rot

A form of wood decay caused by fungi, leading to the wood becoming brittle and crumbly, often occurring in damp or poorly ventilated areas.

Auxiliary Supported Run-Flat

A type of run-flat tire design that includes additional support structures to allow a vehicle to continue driving at reduced speeds even after the tire has lost all air pressure.

Self-Supporting Run-Flat

A tire design that allows a vehicle to continue to be driven for a limited distance with no air pressure due to reinforced sidewalls.