If Indiana Ink, Inc

question 76

Multiple Choice

If Indiana Ink, Inc. has net sales of $400,000 and cost of goods sold of $300,000, Indiana Ink's gross profit rate is

• A) 75%.
• B) 33%
• C) 25%.
• D) 100%.

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Definitions:

Percentage of Sales

A financial ratio that compares a company's profitability, expanses, or other financial indicators to its total sales, often expressed as a percentage.

Percentage of Receivables

A method used to estimate the amount of receivables that will not be collected by calculating a percentage based on historical data.

Key Parties

Key parties refer to the main individuals or groups involved in a specific area of business, such as stakeholders in a project or transaction.

Note

A financial document that represents an agreement for one party to pay another by a certain date, often used to denote debt.