A Firm Has Sales of $2,190,net Income of $174,net Fixed

question 12

Multiple Choice

A firm has sales of $2,190,net income of $174,net fixed assets of $1,600,and current assets of $720.The firm has $310 in inventory.What is the common-size statement value of inventory?

• A)13.36 percent
• B)14.16 percent
• C)19.38 percent
• D)30.42 percent
• E)43.06 percent

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable net assets.

Annual General Meetings

Mandatory yearly gatherings of a company's executives, directors, and shareholders to discuss the company’s performance, its future, and to vote on key issues.

Dilution

A reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.