Manero Company included the following information in its annual report: 2019 2018 2017Sales $ 178,400 $ 162,500 $ 155,500 Cost of goods sold 115,000 102,500 100,000 Operating expenses 50,000 50,000 45,000 Operating income 13,400 10,000 10,500 In a trend income statement for 2017, where 2017 is the base year, sales are expressed as:Multiple Choice84.4%150.5%92.6%100.0%Hansel Corporation’s condensed balance sheets appear below:2019 2018 2017Assets: Current assets $ 55,000 $ 56,500 $ 70,000 Plant & equipment, net 495,000 410,000 440,000 Intangible assets, net 20,000 27,500 40,000 Total assets $ 570,000 $ 494,000 $ 550,000 Liabilities & Stockholders’ Equity: Current liabilities 40,000 $ 35,000 $ 32,500 Long-term liabilities 395,000 310,000 375,000 Stockholders’ equity 135,000 149,000 142,500 Total liabilities & equity $ 570,000 $ 494,000 $ 550,000 In a common size balance sheet for 2018, plant and equipment (net) is expressed as:Multiple Choice83.0%100.0%83.6%91.1%Manero Company included the following information in its annual report:2019 2018 2017Sales $ 178,400 $ 162,500 $ 155,500 Cost of goods sold 115,000 102,500 100,000 Operating expenses 50,000 50,000 45,000 Operating income 13,400 10,000 10,500 In a common-size income statement for 2017, the cost of goods sold is expressed as:Multiple Choice100.0%64.3%40.0%230.0%

Note: The data in the question are merged together and they are first separated in the attached excel file before the questions are answered as follows:

a. Manero Company: In a trend income statement for 2017, where 2017 is the base year, sales are expressed as:

To calculate this, we divide the sales amount 2017 by the sales amount in 2017 and multiply by 100 to calculate the trend percentage for 2017.

Sales trend for 2017 = (2017 Sales/2017 Sales) * 100 = ($155,500/$155,500) * 100 = 100%

b. Hansel Corporation: In a common size balance sheet for 2018, plant and equipment (net) is expressed as:

Since plant and machinery falls within the category of assets, the value of plant and machinery in 2018 is divided by the total assets in 2018 and then multiplied by 100 as follows

Plant and equipment (net) percentage in 2018 = ($410,000 / $494,000) * 100 = 83.0%

c. Manero Company: In a common-size income statement for 2017, the cost of goods sold is expressed as:

To calculate this, the cost of good sold in 2017 in divided sales in 2017 and then multiplied by 100 as follows:

Cost of good sold percentage in 2017 = ($100,00 / $155,500) * 100 = 64.3%