Foreign Travel Services has net income of $48,400, total assets of $219,000, total equity of $154,800, and total sales of $311,700. What is the common-size percentage for the net income?
A) 9.00 percent
B) 13.90 percent
C) 15.53 percent
D) 22.10 percent
E) 31.27 percent

Question

Quizplus · Accepted Answer

To calculate the common-size percentage for net income, we need to divide the net income by the total sales and multiply by 100.

Net income / Total sales * 100 = Common-size percentage for net income

$48,400 / $311,700 * 100 = 15.53%

Therefore, the answer is (C) 15.53 percent.

Foreign Travel Services Has Net Income of $48,400, Total Assets