Review of the financial statements revealed the following for Cullumber Inc.: sales $1256000, net income $43700, total assets $653120, long- term debt $761000, interest expense $65312 and cost of goods sold $781000. When preparing common- size financial statements, interest expense would be shown as a) 10.0% b) 9.2%. c) 8.4%. d) 5.2%.

Review of the financial statements revealed the following for Cullumber Inc.: sales $1256000, net income $43700, total assets $653120, long- term debt $761000, interest expense $65312 and cost of goods sold $781000. When preparing common- size financial statements, interest expense would be shown as a) 10.0% b) 9.2%. c) 8.4%. d) 5.2%.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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