Income Statement You Have Been Given the Following Information for Ross's

question 70

Multiple Choice

Income Statement You have been given the following information for Ross's Rocket Corp.:
Net sales = $1,000,000;
Gross profit = $400,000;
Addition to retained earnings = $60,000;
Dividends paid to preferred and common stockholders = $90,000;
Depreciation expense = $50,000.
The firm's tax rate is 40 percent.What are the cost of goods sold and the interest expense for Ross's Rocket Corp.?

• A)$100,000, and $600,000, respectively
• B)$600,000, and $100,000, respectively
• C)$600,000, and $200,000, respectively
• D)$700,000, and $100,000, respectively

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Definitions:

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