Use the Following Information for Questions:
Consider the Following Income

question 64

Multiple Choice

Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l }&2011&2010\\ \text {Sales revenue }&\$97,000&\$86,200\\ \text { Less: Cost of goods sold}&45,600&53,400\\ \text {Gross profit }&51,700&32,800\\ \text { Less: Selling and administration costs Income before }&22,500&18,300\\ \text {income tax }&29,200&14,500\\\end{array}$

-What was the 2011 net profit margin before income tax closest to?

• A)16.8%
• B)23.1%
• C)30.0%
• D)53.1%

---

Definitions:

Total Liabilities

The total of all financial obligations owed by a business to creditors, including loans, accounts payable, and other debts.

Retained Earnings

The portion of a company's profits that are not distributed as dividends to shareholders but are kept by the company for reinvestment.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company pays out to its shareholders.