Use the Following Selected Information from Wheeler, LLC to Determine

question 6

Multiple Choice

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for cost of goods sold using 2016 as the base. $\begin{array}{|l|r|r|}\hline & \mathbf{2 0 1 7} &2016 \\\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \\\hline \text { Cost of goods sold } & 151,900 & 129,590 \\\hline \text { Operating expenses } & 55,240 & 53,240 \\\hline \text { Net earnings } & 27,820 & 19,820\\\hline\end{array}$

• A)117.2% for 2017 and 100.0% for 2016.
• B)119.4% for 2017 and 100.0% for 2016.
• C)55.0% for 2017 and 56.0% for 2016.
• D)36.4% for 2017 and 41.1% for 2016.
• E)65.1% for 2017 and 64.6% for 2016.

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Definitions:

Cash Disbursements

Money paid out by a business, including expenses, debt payments, and purchase of assets.

Cash Balance

The total amount of cash or cash equivalents available in a company's account at any given time.

Common Stock

Represents ownership shares in a corporation, granting shareholders voting rights and a share in the company's profits through dividends.

Account Receivable

Money owed to a company for goods or services that have been delivered but not yet paid for by customers.