Use the Following for Questions

question 44

Multiple Choice

Use the following for questions
Sanchez Company engaged in the following transactions during 2015:
1) Started the business by issuing $42,000 of common stock for cash.
2) The company paid cash to purchase $26,400 of inventory.
3) The company sold inventory that cost $16,000 for $30,600 cash.
4) Operating expenses incurred and paid during the year,$14,000.
Sanchez Company engaged in the following transactions during 2016:
1) The company paid cash to purchase $35,200 of inventory.
2) The company sold inventory that cost $32,800 for $57,000 cash.
3) Operating expenses incurred and paid during the year,$18,000.
Note: Sanchez uses the perpetual inventory system.
-Sanchez's gross margin for the year 2016 is:

• A)$6,200.
• B)$24,200.
• C)$21,800.
• D)$32,800.

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Definitions:

Coefficient of Determination

A measure in statistics that indicates the proportion of the variance in the dependent variable predictable from the independent variable(s).

Coefficient of Determination

A statistical measure that quantifies the proportion of the variance in the dependent variable predictable from the independent variable(s), often represented as \(R^2\).

Independent Variable

A variable in an experimental or statistical model that is manipulated or changed to observe its effects on a dependent variable.

Least Squares Line

The line that minimizes the sum of the squared differences between observed and predicted values in regression analysis.