Use This Information to Answer the Following Question Gross Margin from Sales Would Be
A) $124,000

question 161

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Pawnee Market appear as follows:
$\begin{array}{lr}\text { Advertising Expense } & 28,000 \\\text { Common Stock } & 200,000 \\\text { Dividends } & 42,000 \\\text { Freight-In } & 14,000 \\\text { Freight-Out Expense } & 20,000 \\\text { Interest Income } & 48,000 \\\text { Merchandise Inventory (Jan. 1) } & 140,000 \\\text { Merchandise Inventory (Dec. 31) } & 112,000 \\\text { Purchases } & 120,000 \\\text { Purchases Returns and Allowances } & 8,000 \\\text { Rent Expense } & 18,000 \\\text { Retained Earnings } & 80,000 \\\text { Sales } & 302,000 \\\text { Sales Returns and Allowances } & 38,000 \\\text { Wages Expense } & 64,000\end{array}$ Gross margin from sales would be

• A) $124,000.
• B) $110,000.
• C) $148,000.
• D) $136,000.

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Definitions:

Particular Goods

Specific items or products that are distinguished by their unique features, functions, or qualities from general or generic goods.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Cash Flows

The movement of funds in and out of a company or financial entity, crucial for assessing its financial health.

Present Values

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.