Use the Following Selected Information from Wheeler,LLC to Determine the 2015

question 124

Multiple Choice

Use the following selected information from Wheeler,LLC to determine the 2015 and 2014 common size percentages for operating expenses using Net sales as the base.

• A)36.4% for 2015 and 41.1% for 2014.
• B)55.0% for 2015 and 56.0% for 2014.
• C)23.9% for 2015 and 23.0% for 2014.
• D)103.8% for 2015 and 100.0% for 2014.
• E)20.0% for 2015 and 23.0% for 2014.

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Definitions:

Sales

The activities involved in selling products or services, or the total amount of goods or services sold.

Times-Interest-Earned Ratio

A fiscal indicator that evaluates a firm's capacity to satisfy its debt commitments utilizing its present income.

Operating Costs

Expenditures that are necessary for the day-to-day operations of a business, including costs related to manufacturing, sales, and administration.

Interest Charges

Interest charges are the costs incurred by an entity for borrowing money, quantified as a percentage of the principal loan amount.