The Net Sales Figure of XYZ Company in 2012 Was

question 145

Multiple Choice

The net sales figure of XYZ Company in 2012 was $300,000. If the cost of goods available for sale was $280,000 and gross margin was 35 percent of net sales, ending inventory must have been

• A) $70,000
• B) $85,000
• C) $195,000
• D) $105,000

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Definitions:

Environmental Risk

The potential for environmental damage or adverse health effects resulting from exposure to environmental hazards or pollutants.

Control Risk

The risk that errors or irregularities in financial statements will not be prevented, or detected and corrected, by an organization's internal controls.

Supply-Chain Leverage

The strategic use of supply chain processes and partnerships to gain competitive advantage in cost, speed, or innovation.

Net Profit Margin

A financial ratio that shows the percentage of revenue remaining as profit after all expenses are deducted, serving as an indicator of a company's profitability.