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The following income statement information is available for two different companies within the same industry: Smith $8,000 2,500 5,500 Jones $59,000 29,000 30,000 Net Sales

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The following income statement information is available for two different companies within the same industry: Smith $8,000 2,500 5,500 Jones $59,000 29,000 30,000 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses); Interest Expense 400 600 1,000 4,500 600 800 1,400 28,600 (200) 1600) O A. Jones Company's percentage for operating income is 48.47% O B. Jones Company's percentage of total operating expenses is 9.49% OC. Smith Company's percentage of gross profit is 41.25% OD. Smith Company's percentage for net income is 38.98% The following income statement information is available for two different companies within the same industry: Smith $8,000 2,500 5,500 Jones $59,000 29,000 30,000 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense 400 600 1,000 4,500 600 800 1,400 28,600 (200) 1600) O A. Jones Company's percentage for operating income is 48.47% O B. Jones Company's percentage of total operating expenses is 9.49% OC. Smith Company's percentage of gross profit is 41.25% OD. Smith Company's percentage for net income is 38.98% Piomy Lapora. Selling Expenses 400 600 Administrative Expenses 600 800 Total Operating Expenses 1,000 1,400 Operating Income 4,500 28,600 Other Income and (Expenses): Interest Expense (200) (600) Total Other Income and (Expenses) (200) (600) Income Before Income Taxes 4,300 28,000 Income Tax Expense 1,000 5,000 Net Income $3,300 $23,000 When preparing a common-size statement and comparing the percentages for the two companies, which staternent is correct? A. Jones Company's percentage for operating income is 48.47% B. Jones Company's percentage of total operating expenses is 9.49% OC. Smith Company's percentage of gross profit is 41.25% OD. Smith Company's percentage for net income is 38.98%

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