Haverty Industries Increased Its Gross Profit Rate from 18

question 179

Multiple Choice

Haverty Industries increased its gross profit rate from 18.4% in 2021 to 23.7% in 2022.Which of the following would be a possible explanation for this change?

• A)Haverty's global sourcing efforts at the beginning of 2022 resulted in a lower cost of merchandise sold.
• B)Haverty's new profit lines with lower margins in 2022 became a larger component of their sales.
• C)Haverty increased its product markdowns in 2022.
• D)Haverty's average margin between the selling price and the inventory cost decreased over this two-year period.

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Definitions:

Net New Bonds

The total value of newly issued bonds minus the bonds that have matured or been bought back by the issuer within a specific period.

Operating Cash Flow

Represents the amount of cash generated by a company's regular business operations.

Normal Business Activities

The everyday tasks and operations conducted by a company to generate profits and maintain viability, such as sales, production, and administration.