The Following Data (In Thousands of Dollars) Have Been Taken

question 104

Multiple Choice

The following data (in thousands of dollars) have been taken from the accounting records of Karlist Corporation for the just completed year.
$\begin{array} { | l | r | } \hline \text { Sales } & \$ 800 \\\hline \text { Raw materials inventory, beginning } & \$ 60 \\\hline \text { Raw materials inventory, ending } & \$ 70 \\\hline \text { Purchases of raw materials } & \$ 180 \\\hline \text { Direct labour } & \$ 100 \\\hline \text { Manufacturing overhead } & \$ 190 \\\hline \text { Administrative expenses } & \$ 110 \\\hline \text { Selling expenses } & \$ 150 \\\hline \text { Work-in-process inventory, beginning } & \$ 70 \\\hline \text { Work-in-process inventory, ending } & \$ 80 \\\hline \text { Finished goods inventory, beginning } & \$ 120 \\\hline \text { Finished goods inventory, ending } & \$ 160 \\\hline\end{array}$


-What was the Gross Margin (in thousands of dollars) for the year?

• A) $350.
• B) $130.
• C) $390.
• D) $190.

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Definitions:

Financial Data

Financial data encompasses quantitative information about a business's financial position, performance, and cash flows, typically found in financial statements.

Sales On Account

Transactions where revenue is recorded when a sale is made but the cash is collected at a later date.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.

Financial Data

Information related to financial transactions, performance, and status of an entity.