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%.

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Definitions:

Testable

Pertaining to a hypothesis or theory that can be empirically investigated to determine its validity.

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The specific details and plot of a dream as recalled by the person who experienced it.

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A journey or excursion taken on a motorcycle, often implying a sense of adventure or exploration.

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Internal desires or hopes for specific outcomes, experiences, or possessions.