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Island Industries,Inc

question 143

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Island Industries,Inc.reported Net Sales of $306,000,Cost of Goods Sold of $192,600,Operating Expenses of $58,900,and Income Tax Expense of 12,300.Island Industries' net income percentage was:


Definitions:

Nominal Rate

The stated interest rate on a financial product, not accounting for inflation or the compounding of interest.

Effective Rate

The actual interest rate on an investment or loan, accounting for the effect of compounding over a given period.

Deposits

Funds placed into banking institutions for safekeeping. These can be made into various types of accounts including savings, checking, and money market accounts.

Effective Rate

The actual interest rate an investor receives after the effects of compounding interest are taken into account.

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