7. The following financial statement items are shown for J&T Manufacturing. Net sales Cost of goods sold Insurance expense Total operating expenses Net income $840,000 360,000 28,000 120,000 56,000 Calculate the common-size percentage for insurance expense. a. 3.3% b. 5.8% c. 23.3% d. 50.0% 8. Investigating liquidity is important because a. if a company cannot pay its bills on time, it will have difficulty obtaining resources needed to continue operating. b. a company needs the ability to buy long-term assets. c. a company's price earnings ratio will decline. d. GAAP requires that assets must exceed liabilities