The Following Information Pertains to Unique Company What Is the Profit Margin for This Company?
A) 55

question 285

Multiple Choice

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 40,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000 \\\text { Total Assets } & \$ 300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 60,000 \\\text { Long-term liabilities } & 90,000 \\\text { Stockholders' equity-common } & 150,000 \\\text { Total Liabilities and Stockholders' Equity } & \$ 300,000\\\\\text { Income Statement }\\\text { Sales revenue } & \$ 90,000 \\\text { Cost of goods sold } & 45,000 \\\text { Gross margin } & 45,000 \\\text { Operating expenses } & 20,000 \\\text { Net income } & \$ 25,000 \\& \\\text { Number of shares of common stock } & 6,000 \\\text { Market price of common stock } & \$ 20 \\\text { Dividends per share on common stock } & 0,90 \\\text { Cash provided by onerations } & \$ 30,000\end{array}$ What is the profit margin for this company?

• A) 55.6%
• B) 33.3%
• C) 27.8%
• D) 8.3%

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Definitions:

Meditative

Pertaining to or involving meditation, a practice of focused attention to achieve a mentally clear and emotionally calm state.

Structural Configuration

The arrangement of roles, responsibilities, and relationships within an organization, determining how it is organized and how it functions.

Simple Organization Design

An organizational structure characterized by low complexity, few hierarchical levels, and wide spans of control.

Dominant Technologies

The leading technologies in a particular field or industry that have widespread adoption and set the standard for operations and products.