9. Use the following selected information from our company to determine the 2017 and 2016 common size percentages for operating expenses using Net sales as the base.

	2017	2016
Net sales	$276,200	$231,400
Cost of goods sold	151,900	129,590
Operating expenses	55,240	53,240
Net earnings	27,820	19,820

Group of answer choices

36.4% for 2017 and 41.1% for 2016.

55.0% for 2017 and 56.0% for 2016.

23.9% for 2017 and 23.0% for 2016.

103.8% for 2017 and 100.0% for 2016.

20.0% for 2017 and 23.0% for 2016.

10. Three of the most common tools of financial analysis are:

Group of answer choices

Financial reporting, ratio analysis, vertical analysis.

Ratio analysis, horizontal analysis, financial reporting.

Horizontal analysis, vertical analysis, ratio analysis.

Trend analysis, financial reporting, ratio analysis.

Vertical analysis, political analysis, horizontal analysis.

11. A company's most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is:

Group of answer choices

0.42

0.58

1.38

0.73

1.00

12. Refer to the following selected financial information from our company. Compute the company's profit margin for Year 2.

	Year 2	Year 1
Net sales	$478,500	$426,250
Cost of goods sold	276,300	250,120
Interest expense	9,700	10,700
Net income before tax	67,250	52,680
Net income after tax	46,050	39,900
Total assets	317,100	288,000
Total liabilities	181,400	167,300
Total equity	135,700	120,700

Group of answer choices

14.1%.

11.7%.

9.6%.

16.7%.

33.9%.

13. Using the information below for our company; determine the cost of goods manufactured during the current year:

Direct materials used	$5,000
Direct Labor	7,000
Total Factory overhead	5,100
Beginning work in process	3,000
Ending work in process	4,000

Group of answer choices

$12,000.

$16,100.

$17,100.

$18,100.

$13,600.