Arlington Company Has Prepared the Following Common-Size Income Statement to Compare

question 80

Multiple Choice

Arlington Company has prepared the following common-size income statement to compare its performance with industry averages: Which of the following statements can be correctly concluded from the above data?

• A)Arlington's gross profit per dollar of sales is higher than the industry average.
• B)Arlington's net income is higher than the industry average.
• C)Arlington achieves better results than the industry by earning higher revenues.
• D)Arlington achieves better profitability than the industry, primarily by controlling operating expenses more effectively.

---

Definitions:

Common Stock Subscribed

Common stock subscribed is a term used to describe an agreement by investors to purchase common stock, a type of equity, from a company.

Polyandry

A form of marriage where a woman has more than one husband at the same time.

Matriarchy

A social system in which women hold primary power, including roles of political leadership, moral authority, social privilege, and control of property.

Societies

Large groups of individuals bound by social relationships, sharing common geographical or social territory, and subject to the same political authority and dominant cultural expectations.