Use the Following Selected Information from Wheeler, LLC to Determine

question 142

Multiple Choice

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of goods sold using Net sales as the base. $$\begin{array} { | l | r | r | } \hline & { \mathbf { 2 0 1 7 } } &{ \mathbf { 2 0 1 6 } } \\\hline \text { Net sales } & \$ 276,200 & \$ 231,400 \\\hline \text { Cost of goods sold } & 151,900 & 129,590 \\\hline \text { Operating expenses } & 55,240 & 53,240 \\\hline \text { Net earnings } & 27,820 & 19,820 \\\hline\end{array}$$

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

---

Definitions:

Accounting Policies

The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.

AASB 6

Refers to the Australian Accounting Standards Board standard that deals with the exploration for and evaluation of mineral resources.

AASB 6

Exploration for and Evaluation of Mineral Resources, an Australian standard that governs the financial reporting of exploration and evaluation expenditures in the mining sector.

Exploration Phase

The period in the development of a mining, oil, or gas project focused on discovering and determining the size and quality of a mineral or hydrocarbon deposit.