Use the Following Selected Information from Farris,LLC to Determine the Year

question 119

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.

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Definitions:

Decimal Equivalent

The representation of fractions as decimals by dividing the numerator by the denominator.

Percent Equivalent

A way to express a number as a percentage of 100.

Rounded

Adjusted to the nearest whole number or specified decimal place to make calculations simpler or to reflect measurement limitations.

Decimal Equivalent

A numerical representation that expresses fractions in a decimal format.