The Following Financial Statement Information Is Available for James Corporation

question 130

Multiple Choice

The following financial statement information is available for James Corporation: $\begin{array}{lrr}&2020&2019\\\text { Net sales } & \$ 780,000 & \$ 697,000 \\\text { Cost of goods sold } & 406,000 & 377,000 \\\text { Net income } & 120,000 & 80,000 \\\text { Tax expense } & 48,000 & 29,000 \\\text { Interest expense } & 14,000 & 14,000\end{array}$ The profit margin for 2020 is

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

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Definitions:

Lb

The abbreviation for pound, a unit of mass or weight in the British customary system of measurement.

Gram

A metric unit of mass equal to one-thousandth of a kilogram.

Pint

A unit of volume measurement used chiefly in the U.K. and the U.S., equal to half a quart or approximately 568 milliliters in the U.K. and 473 milliliters in the U.S.

Pt

Refers to the chemical element Platinum with the atomic number 78, known for its use in catalysts and jewelry.