Use the Following Information for Questions 99 - 101

question 144

Multiple Choice

Use the following information for questions 99 - 101.
During 2014, Martin Corporation sold merchandise costing $3,500,000 on an installment basis for $5,000,000. The cash receipts related to these sales were collected as follows: 2014, $2,000,000; 2015, $1,750,000; 2016, $1,250,000.
-What amount would be shown in the December 31, 2015 financial statements for realized gross profit on 2014 installment sales, and deferred gross profit on 2014 installment sales, respectively?

• A) $525,000 and $375,000
• B) $975,000 and $525,000
• C) $375,000 and $1,125,000
• D) $525,000 and $1,125,000

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Definitions:

Confidence Level

The degree of certainty or probability with which one can expect a result to fall within a specified range.

Confidence Interval

A statistical interval estimate, used to indicate the reliability of an estimate.

Population Proportions

Measures that represent the fraction of the population that possesses a particular attribute or characteristic.

Confidence Coefficient

Represents the degree of certainty or confidence that a specified confidence interval contains the true value of an unknown population parameter.