Fulton Company Has the Following Data Available If a Common Size Income Statement Were Prepared,what Percentage Would

question 63

Multiple Choice

Fulton Company has the following data available:
$\begin{array}{l}\text {Cost of Goods Sold, For the Year Ending December 31, 2013} & \$ 470 \\\text {Cost of Goods Sold, For the Year Ending December 31, 2012} & \$440 \\\text {Sales, For the Year Ending December 31, 2013} & \$ 900 \\\text {Sales, For the Year Ending December 31, 2012} & \$ 800 \\\text {Net Income, For the Year Ending December 31, 2013} & \$ 130 \\\text {Net Income, For the Year Ending December 31,2012} & \$ 110 \\\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2013 sales of Fulton Company?

• A)2)2%
• B)19.4%
• C)28.3%
• D)52.2%
• E)100%

---

Definitions:

Net Income

Net income is the profit a company makes after deducting all its costs and expenses from its total revenue.

Statement of Stockholders' Equity

A financial statement that shows the changes in the value of a company's equity over a specific period.

Common Stock

Shares of ownership in a corporation, granting holders voting rights and a portion of profits in the form of dividends.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders’ equity at a specific moment, showing the company's financial position.