Use the Following Selected Information from Wheeler, LLC to Determine

question 216

Multiple Choice

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for operating expenses using Net sales 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) 23.9% for 2017 and 23.0% for 2016.
• D) 103.8% for 2017 and 100.0% for 2016.
• E) 20.0% for 2017 and 23.0% for 2016.

Understand the difference between structures and unions in C.

Understand the concept and legal framework of "distribution" as defined by the Revised Act.

Identify the principal sources for corporate financing.

Comprehend the major legal issues related to the payment for shares.

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Definitions:

Directly Proportional

A relationship between two variables wherein they increase or decrease at the same ratio.

Fifth Power

Raising a number or expression to the exponent of five, multiplying it by itself four times.

Hooke's Law

A principle of physics that states the force needed to extend or compress a spring by some distance is proportional to that distance.

Spring Scale

A scale that measures weight or force by the stiffness of springs.