To Follow Is Selected Information About the Blaz Company for the Current

question 124

Multiple Choice

To follow is selected information about The Blaz Company for the current year and prior year. $$\begin{array} { | l | l | l | } \hline \text { Account } & \text { Current } & \text { Priar } \\\hline \text { Net sales revenue } & \$ 648,000 & \$ 595,000 \\\hline \text { Cost of goods sold } & \$ 401,760 & \$ 425,000 \\\hline \text { Gross profit } & \$ 246,240 & \$ 170,000 \\\hline \text { Selling/general expenses } & \$ 136,080 & \$ 93,500 \\\hline \text { Net income before tax } & \$ 110,160 & \$ 76,500 \\\hline \text { Income tax } & \$ 32,400 & \$ 22,800 \\\hline \text { Net income } & \$ 77,760 & \$ 53,700 \\\hline\end{array}$$
-What is the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year) ?

• A)44.80%
• B)12.00%
• C)13.07%
• D)144.80%

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Definitions:

Corporate Headquarters

The main office or center of operations for a corporation, where key administrative and managerial activities take place.

Operating Segments

Components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources.

Manufacturing Operations

Processes involved in the conversion of raw materials or components into finished goods that meet a company's quality standards and customer expectations.

Operating Segments

Components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.