A Firm Has Sales of $311,000 and Net Income of $31,600.Currently,there

question 20

Multiple Choice

A firm has sales of $311,000 and net income of $31,600.Currently,there are 28,000 shares outstanding at a market price of $36 per share.What is the price-sales ratio?

• A)2.08
• B)3.24
• C)4.26
• D)5.15
• E)11.11

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Definitions:

Interim Financial Reporting

Interim financial reporting involves the preparation of financial statements for periods shorter than a fiscal year, such as quarterly or half-yearly reports, to provide timely information.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently acquired items are assumed to be sold first, affecting the cost of goods sold and ending inventory valuation.

Gross Profit Rates

The ratio of gross profit to net sales, indicating the percentage of revenue that exceeds the cost of goods sold.