Ramos Company Ramos Company included the following information in its annual report:
Refer to the information for Ramos Company.In a common size income statement for 2011,the operating expenses are expressed as:
A) 30.3%
B) 28.0%
C) 43.8%
D) 100%

Question

Ramos Company Ramos Company included the following information in its annual report:
 Refer to the information for Ramos Company.In a common size income statement for 2011,the operating expenses are expressed as:
A) 30.3% 
B) 28.0% 
C) 43.8% 
D) 100%

Quizplus · Accepted Answer

To calculate the common size income statement, we divide each item in the income statement by the total revenue. 
Operating expenses = $12,210,000/$43,680,000 = 0.28 or 28%

Ramos Company Ramos Company Included the Following Information in Its