Assume the Following Cost of Goods Sold Data for a Company

question 30

Multiple Choice

Assume the following cost of goods sold data for a company: $$\begin{array} { r r } 2015 & \$ 1,680,000 \\2014 & 1,400,000 \\2013 & 1,200,000\end{array}$$ If 2013 is the base year, what is the percentage increase in cost of goods sold from 2013 to 2015?

• A) 140%
• B) 40%
• C) 23%
• D) 17%

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Definitions:

Yield to Maturity

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the date it matures, accounting for interest payments and principal recovery.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Annual Coupon

The annual interest payment made to bondholders, typically fixed and expressed as a percentage of the bond's face value.

Income Effect

The change in an individual's or economy's income and how that change affects the quantity demanded of a good or service.