The Following Financial Statement Information Is Available for James Corporation

question 150

Multiple Choice

The following financial statement information is available for James Corporation: $\begin{array}{lrr}&2017&2016\\\text { Net sales } & \$ 780,000 & \$ 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 120,000 & 80,000 \\\text { Tax expense } & 48,000 & 29,000 \\\text { Interest expense } & 14,000 & 14,000\end{array}$ The profit margin for 2017 is

• A) 15.4%.
• B) 47.9%.
• C) 32.1%.
• D) 13.5%.

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Definitions:

Adhesion Contract

A standardized contract drafted by one party (usually a business) that offers little or no negotiation opportunity to the other party, often perceived as "take-it-or-leave-it" agreements.

Arbitration Agreement

A contract in which two or more parties agree to resolve disputes through arbitration rather than through the court system.

Dispute Resolution Rules

Guidelines established to resolve conflicts through arbitration, mediation, or other methods outside of the courtroom.

Indivisible

Unable to be divided or separated into parts without losing its essence or value, often used in legal contexts to describe contracts or obligations.