The Following Information Pertains to Chestnut,Inc What Would Be Reported Next to Interest Expense on a Revenue

question 118

Multiple Choice

The following information pertains to Chestnut,Inc.: $\begin{array}{lr}\text { Net Sales Revenue } & \$ 96,460 \\\text { Cost of Sales } & 63,458 \\\text { Gross Profit } & 33,002 \\\text { Operating and Other Expenses } & 25,430 \\\text { Interest Expense } & 560 \\\text { Income Tax Expense } & 2,622 \\\text { Net Income } & \$ 4,390\end{array}$ What would be reported next to Interest Expense on a common sized income statement?

• A)12.7%
• B)1.7%
• C)0.6%
• D)0.9%

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Definitions:

Discrete Random Variables

Variables that assume a finite or countably infinite set of values, each with a certain probability.

P(X = x, Y = y)

The joint probability of two discrete random variables X and Y taking on specific values x and y, respectively.

Uniform Distribution

A type of probability distribution where all outcomes are equally likely to occur within a defined range.

Density Function

A mathematical function that describes the probability distribution of a continuous random variable, showing the likelihood of different outcomes.