The Following Information Pertains to Unique Company What Is the Profit Margin for This Company?
A)42

question 123

Multiple Choice

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 40,000 \\\text { Accounts receivable (net) } & 25,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets } & \$ 295,000 \\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 85,000 \\\text { Stockholders' equity-Common } & 150,000 \\\text { Total Liabilities and Stockholders' Equity } & \$ 295,000\\\\\text { Income Statement }\\\text { Sales revenue } & \$ 85,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 40,000 \\\text { Operating expenses } & 20,000 \\\text { Net income } & \$ 20,000\\\\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share on common stock } & 0.90 \\\text { Cash provided by operations } & \$ 30,000\end{array}$ What is the profit margin for this company?

• A)42.9%
• B)18.8%
• C)23.5%
• D)15.0%

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Definitions:

Personality Theories

The systematic study and models that attempt to explain how individual personalities develop, the traits they encompass, and how these traits influence behavior.

Locus of Control

A psychological concept that refers to the extent to which individuals believe they have control over events affecting their lives, with an internal locus attributing outcomes to their own efforts, and an external locus attributing outcomes to external circumstances or luck.

Stress Coping

Strategies or methods employed by individuals to manage and mitigate stress and its effects on their well-being.

Self-Esteem

A measure of how much you value and respect yourself.