Refer to the Following Selected Financial Information from Shakley's Incorporated

question 107

Multiple Choice

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Net sales } & \$ 478,500 & \$ 426,250 \\\hline \text { Cost of goods sold } & 276,300 & 250,120 \\\hline \text { Interest expense } & 9,700 & 10,700 \\\hline \text { Net income before tax } & 67,250 & 52,680 \\\hline \text { Net income after tax } & 46,050 & 39,900 \\\hline \text { Total assets } & 317,100 & 288,000 \\\hline \text { Total liabilities } & 181,400 & 167,300 \\\hline \text { Total equity } & 135,700 & 120,700 \\\hline\end{array}$

• A)14.1%.
• B)33.9%.
• C)11.7%.
• D)9.6%.
• E)16.7%.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, often used to depict the frequency of data points in successive intervals.

Skewed

Refers to a distribution that is not symmetrical, with a longer tail on one side of the peak than the other.

Distribution

A statistical term that describes all the possible values and occurrences that a data set or variable can take within a range.

Accidents

Unplanned events that result in injury, loss, or damage, occurring as a result of unpredictable factors or circumstances.