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5. Use the following selected information from Wheeler, LLC to determine the 2015 and 2014 common size percentages for operat
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Answer #1

Under vertical analysis, all items of income statement are expressed as a % of sales

Common size % for operating expenses = Operating Expenses/Sales

2015 = 55,240/276,200

= 20%

2014 = 53,240/231,400

= 23.0077%

i.e. 23.0%

Hence, the answer is E.

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