Use the Following Information for Questions 64 Through 69

question 7

Multiple Choice

Use the following information for questions 64 through 69.
The following data are provided: Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The profit margin on sales for 2015 is

• A) 2,200 ÷ 6,400.
• B) 750 ÷ 6,400.
• C) 2,200 ÷ 4,200.
• D) 750 ÷ 4,200.

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Definitions:

Measurement

The process of quantifying qualitative financial data in monetary terms through various accounting methods.

Going Concern Assumption

The assumption that the entity will continue to operate for the foreseeable future.

Historical Costs

The original monetary value at which an asset was bought or a liability was incurred.

Liquidation

The process of closing a business, selling its assets, and using the proceeds to pay creditors, with any leftovers distributed to shareholders.