Use the Table for the Question(s) Below

question 26

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement and other information:

-Luther's Net Profit Margin for the year ending December 31,2005 is closest to:

• A) 1.8%
• B) 2.7%
• C) 5.4%
• D) 16.7%

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Definitions:

Cash Flows

This refers to the net amount of cash being transferred into and out of a business, especially in the context of operating, investing, and financing activities.

Financial Statement

A written record that conveys the business activities and financial performance of a company, commonly including balance sheet, income statement, and cash flow statement.

Dividends Declared

This is the amount of earnings a company's board of directors decides to distribute to shareholders in the form of dividends.

Income Tax Expense

The amount of expense that a company reflects on its income statement due to federal, state, and foreign income taxes.