The Following Financial Information Was Summarized from the Accounting Records

question 49

Multiple Choice

The following financial information was summarized from the accounting records of Globe Corporation for the current year ended December 31: $$\begin{array} { l r r r } & \begin{array} { r } \text { Northern } \\\text { Division }\end{array} & \begin{array} { r } \text { Southern } \\\text { Division }\end{array} & \begin{array} { r } \text { Corporate } \\\text { Total }\end{array} \\\text { Cost of goods sold } & \$ 310,000 & \$ 175,000 & \\\text { Direct operating expenses } & 250,000 & 115,000 & \\\text { Net sales } & 600,000 & 410,000 & \\\text { Interest expense } & & & \$ 12,000 \\\text { General overhead } && & 101,000 \\\text { Income tax } & && 26,700\end{array}$$ ? The operating income for the Southern Division is:

• A) $150,000.
• B) $120,000.
• C) $295,000.
• D) $154,400.

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Definitions:

Embryonic Stage

The period in prenatal development from fertilization until around the end of the eighth week, where significant growth and differentiation of the embryo occurs.

Teratogen

Any agent that can cause developmental malformations (birth defects) in a fetus when exposure occurs during pregnancy.

Environmental Toxins

Harmful pollutants or chemicals present in the environment that can cause adverse health effects on humans and wildlife.

Alcohol

A psychoactive substance that is found in beverages such as beer, wine, and spirits, and can alter mood, cognition, and behavior.