The Financial Statements of Midwest Tours Are Given Below

question 64

Multiple Choice

The financial statements of Midwest Tours are given below.
-Refer to the financial statements of Midwest Tours.The firm's return on sales ratio for 2009 is __________ percent.

• A)20.2
• B)21.6
• C)22.4
• D)18.0
• E)none of the above

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, which indicates how much a company earns from its core operations.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, considering all forms of taxes.

Investment Account

An account held at a financial institution that holds investments such as stocks, bonds, mutual funds, and other assets for the benefit of the investor.

Intercompany Profit

Profits that arise from transactions between companies within the same corporate group, which could distort the true financial position if not eliminated in consolidated financial statements.