Zeman Company Has the Following Data $\begin{array} { l l l l } \text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \\\text { Net Income } &&&& \$ 4 & \$56 & \$52\end{array}$

question 67

Multiple Choice

Zeman Company has the following data: $\begin{array}{llll}&2X13&2X12&2X11\\\text { Sales (all credit sales) } & \$ 800 & \$ 740 & \$ 675 \\\text { Less Cost of Goods Sold } & \underline{525} & \underline{490} &450\\\text { Gross Profit }& \$ 275 &\$ 250 &\$ 225\\\end{array}$ $\begin{array} { l l l l } \text { Operating Profit } &&&& \$ 125 & \$ 110 & \$ 104 \\\text { Net Income } &&&& \$ 4 & \$56 & \$52\end{array}$
What is the return on sales for Zeman Company in 2X13? Has the return on sales improved or not improved since 2X12?

• A)8.0%,improved
• B)8.0%,not improved
• C)14.4%,improved
• D)34.4%,improved
• E)34.4%,not improved

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and sale.

Amounts Due

Financial obligations or debts that are payable to another party or entity.

Grace Period

A time frame after a due date during which a payment can be made without penalty or impact on credit standing.

Interest Charges

The cost incurred by borrowing money, expressed as a percentage of the total amount borrowed, paid to the lender as compensation.