Extracted text: Multiple Choice Problems: (For numbers 1 to 5) The financial statements of Merdana Trading Ltd. are given below: 2014 2013 2014 2013 Cash and Cash Equivalents 12,250 10,470 Total Assets 128,980 113,110 Receivables 9,065 8,055 Inventory 6,620 5,300 Total current liabilities 36,150 42,335 Prepaid Expenses 8,545 10,600 Long-term Liabilities 23,990 18,960 Total Curent Assets 36,480 34,425 Mercedes Aldana, Capital 68,840 51,815 Other Assets 92,500 78,685 Total Liabilities and Equity 128,980 113,110 2014 Sales 104,705 Cost of Sales 32,275 Gross Profit 69,430 Selling Expenses 35,325 Administrative Expenses 12,815 Operating Income 21,290 Interest Expense 1,050 Net Income 20,240 1. A common-size income statement for Merdana would report (amounts rounded) a) Net income of 19%. b) Sales of 100%. c) Cost of sales at 34%. d) All of the above| 2. A common-size balance sheet for Merdana would report (amounts rounded) a) Current liabilities as 28% of total assets. b) Owner's capital is 53% of total liabilities and equity c) Receivables is 7% of total liabilities and equity d) All of the above