The Comparative Financial Statements of Seward,Inc The Gross Profit Percentage for the Current Year Is Closest

question 105

Multiple Choice

The comparative financial statements of Seward,Inc.include the following data: $\begin{array}{lrr}&\text { Curyent Year}&\text { Prior Year }\\\text { Income Statement }\\\text { Net Sales Revenue } & \mathbf{2 3 4 , 0 0 0} & \mathbf{1 8 0 , 0 0 0} \\\text { Cost of Goods Sold } & 99,000 & 84,600 \\\text { Operating Expenses } & 70,200 & 57,600 \\\text { Interest Expense } & 6,300 & 6,300 \\\text { Income Tax Expense } & 9,000 & 7,200 \\\text { Net Income } & 49,500 & 24,300\\ \text {Balance Sheet }\\\text { Current Assets } & \mathbf{2 0 7 , 0 0 0} & \mathbf{1 7 1 , 0 0 0} \\\text { Plant, Property and Equipment, Net } & 176,400 & 189,000 \\\text { Current Liabilities } & 81,000 & 68,400 \\\text { Long-Term Liabilities } & 77,400 & 77,400 \\\text { Stockholders' Equity } & 225,000 & 214,200 \\\text { Total Liabilities \& Stockholders' Equity } & 383,400 & 360,000\end{array}$ The gross profit percentage for the current year is closest to:

• A)42%.
• B)13.5%.
• C)57.7%.
• D)21.15%.

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Definitions:

Labor Surplus

A situation where the supply of labor exceeds the demand, often leading to unemployment or lower wages.

Financial Losses

Negative financial outcomes resulting from business operations, investments, or other financial activities, where expenses exceed revenues.

Transitional Matrix

A mathematical tool used in Markov chain analysis, representing the probabilities of transitioning from one state to another in a dynamic system.

Propensity Analysis

A statistical method used to predict the likelihood of a certain event or behavior occurring.