1. On a common size income statement for the year, what is the percentage that would be shown for sales revenue? A. 100% B. 62% C. 15% 2. On a common size income statement for this year, what is the percentage that would be shown for cost of good sold? A. 30% B. 76% C. 20% D. 24% Solution Answer: 1. On a common size income statement sales is taken for calculation of % so % for sales shall be 100%. 2. Cost of good sold value = 663000 Sales value = Cost of good sold + Gross margin = 663000+ 213000 = 876000 Hence % for Cost of Goods sold = Cost of goods sold *100 / Sales = 663000 *100 / 876000 = 0.76 = 76% .

1. 1. On a common size income statement for the year, what is the percentage that would be shown
for sales revenue?
A. 100%
B. 62%
C. 15%
2. On a common size income statement for this year, what is the percentage that would be shown
for cost of good sold?
A. 30%
B. 76%
C. 20%
D. 24%
The following information is taken from the financial statements of a company for the current
year:
Solution
Answer:
1. On a common size income statement sales is taken for calculation of % so % for sales shall be
100%.
2. Cost of good sold value = 663000
Sales value = Cost of good sold + Gross margin = 663000+ 213000 = 876000

2. Hence % for Cost of Goods sold = Cost of goods sold *100 / Sales = 663000 *100 / 876000 =
0.76 = 76%