6) Keller Company has the following income statement for the year ending December 31, 2016:

Sales $1,562

Cost of goods sold 806

Gross profit 756

Operating expenses:

Wage expense 160

Depreciation expense 16

Rent expense 106

Miscellaneous expense 10

Total operating expenses 292

Operating income 464

Income tax expense 162

Net income $302

If Keller Company prepares a common size income statement, what will they report for Rent expense?

A) 2.3%

B) 4.3%

C) 4.4%

D) 6.8%

7) The balance sheet for James Company is given below:

Cash $242

Accounts Receivable 200

Inventory 388

Prepaid Insurance 70

Fixed Assets 452

Accumulated Depreciation (228)

Total Assets $1,124

Accounts payable $152

Wages payable 32

Notes payable 420

Paid-in capital 160

Retained earnings 360

Total liabilities and stockholders' equity $1,124

If a common-size balance sheet was prepared, what would James Company report for accounts receivable?

A) 13.5%

B) 17.3%

C) 17.8%

D) 86.3%