Use the Following Selected Information from Wheeler, LLC to Determine

question 159

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. $$\begin{array} { | l | r | r| } \hline & { 2017 } & { \mathbf { 2 0 1 6 } } \\\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \\\hline \text { Cost of goods sold } & 151,900 & 129,590 \\\hline \text { Operating expenses } & 55,240 & 53,240 \\\hline \text { Net earnings } & 27,82 \mathrm {~d} & 19,820 \\\hline\end{array}$$

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

---

Definitions:

Tangible Asset

An asset that has physical form and value, such as equipment or real estate.

Economic Benefits

The advantageous gains obtained from resources or actions, including income, profits, or intangible assets like brand reputation.

Fair Value

The expected price for unloading an asset or the charge for relocating a liability in an orderly market transaction at the reckoning time.

Identifiable Assets

Identifiable assets are company assets that can be separated from the entity, sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract.