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 cost of goods sold are expressed as:
A) 130%
B) 115%
C) 64.5%
D) 63.1%

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 cost of goods sold are expressed as:
A) 130% 
B) 115% 
C) 64.5% 
D) 63.1%

Quizplus · Accepted Answer

To calculate the cost of goods sold percentage in a common size income statement, we need to divide the cost of goods sold by the total revenue and then multiply by 100 to express it as a percentage.

Cost of goods sold in 2011 = $968,000 
Total revenue in 2011 = $1,500,000

Cost of goods sold percentage = (Cost of goods sold / Total revenue) x 100 
= ($968,000 / $1,500,000) x 100 
= 64.53%

Therefore, the cost of goods sold is expressed as 64.5% in the common size income statement for 2011.

Ramos Company Ramos Company Included the Following Information in Its