Oakley Corporation Has the Following Comparative Income Statements A)The Common-Size Sales Percent for 2011 Equals 100%
B)The Common-Size

question 33

Multiple Choice

Oakley Corporation has the following comparative income statements.Which of the following statements is false with regard to this comparative data?
Oakley Corporation
Comparative Income Statements
For years ended December 31,2011 and 2010
$\begin{array}{|l|r|r|}\hline \text { Sales } & 2011 & {2010} \\\hline \text { Cost of goods sold } & \$ 360,000 & \$ 267,500 \\\hline \text { Gross profit } & 237,600 & 140,170 \\\hline \text { Operating expenses } & 122,400 & 127,330 \\\hline \text { Net income } & \underline{75,600} & \underline{51,895} \\\hline\end{array}$

• A)The common-size sales percent for 2011 equals 100%
• B)The common-size net income percent for 2010 equals 28.2%
• C)The common-size gross profit percent for 2011 equals (3.87)%
• D)The common-size cost of goods sold for 2010 equals 52.4%
• E)Statements B and D are false

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Definitions:

NICs

Newly Industrialized Countries, nations that are transitioning from primarily agricultural to more industrial and manufacturing-based economies.

GDP

Gross Domestic Product, a measure of the total economic output of a country, calculated by the total value of all goods and services produced over a specific time period.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Health Care Costs

The expenses associated with medical treatment, including the costs of hospitalization, medications, preventive care, and medical devices.