A common-size income statement expresses dividends as 3.6 percent.This means that dividends represent 3.6 percent of
A)net income.
B)total assets.
C)sales.
D)taxable earnings.
E)total owners' equity.

Question

Quizplus · Accepted Answer

A common-size income statement expresses all items as a percentage of sales. Therefore, if dividends are expressed as 3.6 percent, it means that they represent 3.6 percent of the company's total sales.

A Common-Size Income Statement Expresses Dividends as 3