Use the Following Selected Information from Farris, LLC to Determine

question 92

Multiple Choice

Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 trend percents for cost of goods sold using Year 1 as the base.

• A) 36.4% for Year 2 and 41.1% for Year 1.
• B) 55.0% for Year 2 and 56.0% for Year 1.
• C) 119.4% for Year 2 and 100.0% for Year 1.
• D) 117.2% for Year 2 and 100.0% for Year 1.
• E) 65.1% for Year 2 and 64.6% for Year 1.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.