Use the Following Information for Questions

question 16

Multiple Choice

Use the following information for questions:
Review of the financial statements revealed the following for Sonoma Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000.
-When preparing common size financial statements interest expense would be shown as:

• A)10.0%
• B)9.3%
• C)8.4%
• D)5.2%

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Definitions:

Business Transactions

Activities that involve the exchange of goods, services, or money between businesses or individuals.