Review of the financial statements revealed the following for Glitter Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000. When preparing common-size financial statements, interest expense would be shown as
A) 10.0%.
B) 9.3%.
C) 8.4%.
D) 5.2%.

Question

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The Answer of Review of the financial statements revealed the following for Glitter Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000. When preparing common-size financial statements, interest expense would be shown as
A) 10.0%.
B) 9.3%.
C) 8.4%.
D) 5.2%.

Review of the Financial Statements Revealed the Following for Glitter