1. Apply common size analysis to XYZ Company's salaries expense given the following information: salaries expense = $77,000; net sales = $555,000; cost of goods sold = $385,000; operating income = $74,000.

2. Apply common size analysis to ABC Company's cash balance given the following information: cash = $100,000; total revenues = $250,000; total assets = $425,000; total liabilities = $300,000.

I am trying to use the equation (total item/total assets)*100, but I am not sure how to compute or which in each category relates to the item or assets.

2.