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.

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Definitions:

High Inflation

A situation where price levels in an economy rise rapidly over a period, decreasing purchasing power.

Revaluation

The adjustment of the book value of a currency, asset, or liability to reflect its current market value.

Monetary Investments

assets and financial investments such as cash, stocks, bonds, and other instruments that can be easily converted into cash.

Private Companies

Companies that do not have publicly traded shares and are typically owned by a small group of investors, often including the founders and family members.