Ajax Company Had Sales of $70 Million, Cost of Goods

question 124

True/False

Ajax Company had sales of $70 million, Cost of goods of $48.3 million, and Operating Expenses of $1.9. Given the same proportion, Ballard Company's sales are $25.2 million if Operating expenses are $.6.

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Definitions:

Net Sales

The total revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the common shareholders' perspective.

Net Income

The remaining earnings of a corporation after deducting all costs, taxes, and expenses from its gross revenue.

Common Stock

A type of equity security that represents ownership in a corporation, entitling shareholders to vote on corporate matters and possibly receive dividends.