A Firm Has Sales of $3,200,net Income of $390,total Assets

question 88

Multiple Choice

A firm has sales of $3,200,net income of $390,total assets of $4,500,and total equity of $2,750.Interest expense is $50.What is the common-size statement value of the interest expense?

• A)0.89 percent
• B)1.56 percent
• C)3.69 percent
• D)10.26 percent
• E)14.55 percent

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Definitions:

Rational Argument

A logical way of presenting a belief, conclusion, or stance supported by evidence and reasoning.

Logical Appeal

An approach that relies on logic and proof, instead of appealing to the emotions and compassion of the audience.

Methods Of Reasoning

The systematic processes used to arrive at conclusions, including deductive and inductive reasoning.

Indirect Approach

Organizing a message by starting with supporting evidence, constructing a case, and then introducing the main point.