A Company Has Net Sales of $825,000 and Cost of Goods

question 54

Multiple Choice

A company has net sales of $825,000 and cost of goods sold of $547,000.Its net income is $98,500.The company's gross margin and operating expenses,respectively,are:

• A)$209,000 and $191,470
• B)$278,000 and $179,500
• C)$278,000 and $98,500
• D)$179,500 and $98,500
• E)$645,500 and $179,500

Grasp the principles and calculation methods for horizontal analysis.

Comprehend vertical analysis and its application in evaluating financial statements.

Appreciate the significance of ratio analysis in assessing a company's liquidity, solvency, and profitability.

Calculate financial ratios and interpret their implications for a company's financial health.

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Definitions:

European Serfs

Peasants under feudalism, particularly in medieval Europe, who were bound to cultivate their lord's land and were subject to his control, though not owned as slaves.

Legal Rights

Codified entitlements that individuals have under the law, including rights to free speech, fair trial, voting, and equality before the law.

European Slaves

Individuals from European countries who were enslaved or indentured at various points in history, including during the Ottoman conquests and in the Barbary slave trade.

Gang Labor

A system of labor, especially in agriculture, where a group of workers is directed and supervised by an overseer, often associated with the antebellum South in the United States.