Selected Financial Data for Barnstable Company Appear Below -For Year 2,what Was the Net Income Before Taxes as \text

question 138

Multiple Choice

Selected financial data for Barnstable Company appear below:
$\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Sales } & \text { (in thousands) } & \\\hline \text { Operating Expense } & \$ 1,500 & \$ 1,200 \\\hline \text { Interest Expense } & \$ 450 & \$ 400 \\\hline \text { Cost of Goods Sold } & \$ 75 & \$ 30 \\\hline \text { Dividends Declared and Paid } & \$ 900 & \$ 720 \\\hline\end{array}$

-For Year 2,what was the net income before taxes as a percentageof sales?

• A) 3%.
• B) 5%.
• C) 8%.
• D) 10%.

---

Definitions:

Nominal Variables

Variables that represent categories with no intrinsic ranking or order among them.

Data

Information, especially facts or numbers, collected to be examined and considered and used to help decision-making.

Haworth Projection

A method for depicting the cyclic structure of monosaccharides with a simple planar projection.

Cyclic Hemiacetal

A molecule formed from the reaction between an aldehyde and an alcohol resulting in a ring structure containing an oxygen atom.