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:

Physical Inventory

The process of counting and verifying the actual quantities of goods in stock at a particular time.

Inventory Cost Formulas

Methods used to determine the cost of inventory sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

FIFO

First In, First Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.