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 2009,the cost of goods sold are expressed as:

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 2009,the cost of goods sold are expressed as:

Quizplus · Accepted Answer

A common size income statement expresses each item as a percentage of the total revenue. Cost of goods sold (COGS) is typically expressed as a percentage of total revenue, as it represents a major expense for most businesses.

To calculate the common size percentage for COGS, we need to divide the COGS by the total revenue for 2009 (as reported in the annual report).

From the information provided, we do not have the exact figures for COGS or total revenue. However, we can eliminate options C and D because they are greater than 100%, which is impossible for a percentage calculation.

Option B (40.0%) is also unlikely, as it would indicate that COGS was relatively low compared to revenue, which is unlikely for most businesses.

Therefore, the best choice is option A (64.3%), as this is a reasonable percentage for COGS and is the only option left.

Ramos Company Ramos Company Included the Following Information in Its