The Following Financial Statement Information Is Available for Jackson Corporation

question 231

Multiple Choice

The following financial statement information is available for Jackson Corporation: $\begin{array}{lrr}&2014&2013\\\text { Net sales } & \$ 784,000 & \$ 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 115,000 & 80,000 \\\text { Tax expense } & 50,000 & 29,000 \\\text { Interest expense } & 15,000 & 14,000\end{array}$ The profit margin for 2014 is

• A) 14.7%.
• B) 16.6%.
• C) 48.2%.
• D) 12.8%.

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Definitions:

Wage Gap

The disparity in earnings between different groups, often highlighted between genders or races for similar work and qualifications.

Cornerstone of Prosperity

A fundamental basis or condition required for economic growth or success.

Socialist Model

An economic and political system where the means of production, distribution, and exchange are owned or regulated by the community as a whole.

Vertical Integration

Company’s avoidance of middlemen by producing its own supplies and providing for distribution of its product.