Hopper,Inc ​
-Read the Information About Hopper,Inc

question 124

Multiple Choice

Hopper,Inc.
Use the information from Hopper,Inc.to answer the following question.
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$$\begin{array} { l r r } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \\\text { Operating expenses } & 1,400,000 & 1,100,000 \\\text { Income taxes } & 200,000 & 200,000\end{array}$$ ​
-Read the information about Hopper,Inc.Which statement best represents Hopper's performance?

• A)Hopper's profit margin ratio decreased.
• B)Hopper has become more profitable.
• C)Hopper's increase in operating revenues increased the company's net income.
• D)Hopper's operating expenses as a percentage of operating revenues remained the same.

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Definitions:

Operating Cycle

The average period between purchasing or acquiring inventory and receiving cash from sales of the inventory, critical for managing company liquidity.

Cash Cycle

The time period between the outlay of cash for the purchase of inventory and the collection of cash from customers for the sale of that inventory.

Short Term Financing

Financing obtained for a time period of up to one year, used to fund immediate operational needs such as inventory purchase or payroll.

Bankers Acceptances

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, often used in international trade.