Messi Company

Messi Company included the following information in its annual report:

	Year 2	Year 1	Year 0
Sales	$178,400	$162,500	$155,500
Cost of goods sold	115,000	102,500	100,000
Operating expenses	45,000	50,000	45,000
Net income	18,400	10,000	10,500

Refer to the information for Messi Company. In a common size income statement for Year 2, the operating expenses are expressed as:

	a.	30.3%
	b.	100%
	c.	43.8%
	d.	25.2%

3 points

QUESTION 19

Refer to the information for Messi Company. In a percentage change income statement over the period of 2009 to 2011, what is the change in sales?

	a.	100%
	b.	87.2%
	c.	12.8%
	d.	14.7%