The Following Information Pertains to Bailey Company: Balance Sheet $31,20 \mathrm{X} 2$

question 24

Multiple Choice

The following information pertains to Bailey Company: Balance Sheet
At December $31,20 \mathrm{X} 2$
$\begin{array}{lrlr}\text { Current assets } & \$ 18,700 & \text { Current liabilities } & \$ 7,600 \\\text { Long-term assets } & 29,700 & \text { Long-term liabilities } & 13,250\\&&\text { Stockholders' equity }&27,550\\\text { Total assets }&\$ 48,400& \text { Total assets }&\$ 48,400 \end{array}$

Barnum Company
Income Statement
For the Year Ended December $31,20 \mathrm{X} 2$
$\begin{array}{lr}\text { Sales } & \$ 106,950 \\\text { Less: Cost of goods sold } & \underline{61,800) } \\\text { Gross profit } & \$ 45,150 \\\text { Less: Operating expenses } & \underline{31,700} \\\text { Operating income } & \$ 13,450 \\\text { Less other expenses: interest } & \underline{1,300) } \\\text { Income before taxes } & \$ 12,150 \\\text { Less: Income tax expense } & \underline{4,850) } \\\text { Net income } & \$ 7,300\end{array}$ There were 1,000 shares of common stock outstanding with a market value of $75 as of December 31, 20X2.Dividends declared and paid was $5 per share.The return on sales for 20X2 is _____.

• A)6.8%
• B)19.5%
• C)25.8%
• D)42.2%

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Definitions:

Dependent Variable

A variable being tested and measured in an experiment, often considered as the outcome or effect that is influenced by another variable.

Independent Variables

Variables in an experiment or study that are manipulated or categorized to observe their effects on dependent variables.

Marginal Mean

Mean representing a main effect within a factorial research design.

Crime Area

A geographical area known for a higher incidence of criminal activity compared to surrounding regions.