Use the Following Selected Information from Whitman Corp A) 364% for Year 2 and 41

question 70

Multiple Choice

Use the following selected information from Whitman Corp. to determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base. $\begin{array}{lrr}& \text { Year } 2 & \text { Year } 1 \\\text { Net sales } & \$ 276,200 & \$ 231,400 \\\text { Cost of goods sold } & 151,900 & 129,590 \\\text { Operating expenses } & 55,240 & 53,240 \\\text { Net earnings } & 27,820 & 19,820\end{array}$

• 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 56.0% for year 1.

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Definitions:

Assets Abroad

Financial holdings or investments located in foreign countries, outside of an investor's home country.

Current Account Deficit

A measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports.

Capital Account

A national account that records transactions involving the purchase and sale of assets, including real estate, stocks, bonds, and businesses, between residents and non-residents.

Financial Account

Part of the balance of payments, recording transactions that involve financial assets and liabilities between domestic and foreign entities.