A Firm Has Sales of $3,400, Net Income of $390

question 82

Multiple Choice

A firm has sales of $3,400, net income of $390, total assets of $4,500, and total equity of $2,750. Interest expense is $40. What is the common-size statement value of the interest expense?

• A)0.89 percent
• B)1.18 percent
• C)3.69 percent
• D)10.26 percent
• E)14.55 percent

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Definitions:

Traditional Marriages

Marriages that follow conventional customs and norms, often influenced by cultural or religious practices.

Senior Partner-Junior Partner

A hierarchical relationship typically found in businesses or law firms where the senior partner has more authority and experience than the junior partner.

Veto Power

The authority to unilaterally stop or reject a decision, action, or proposal.

Mate Selection

The process individuals use to choose partners with whom to form a reproductive relationship, influenced by various biological, social, and cultural factors.