Table 18-6 Arlington Company Prepared a Common-Size Income Statement, for 2017, to 2017

question 59

Multiple Choice

Table 18-6
Arlington Company prepared a common-size income statement, for 2017, to compare its results with its key competitor, Bardo Company. Please refer to the following data:

-Refer to Table 18-6.Which of the following statements can be correctly concluded from the above data?

• A) Arlington's cost of goods sold is lower than Bardo's on a per unit basis.
• B) Arlington produces a higher amount of gross margin than Bardo.
• C) Arlington makes less total net income than Bardo.
• D) Bardo has more effective cost control than Arlington in the area of operating expenses.

---

Definitions:

Time Value Of Money

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.

Initial Cash Outlay

The immediate amount of cash required to initiate a project, investment, or purchase.

Conventional

Based on or in accordance with what is generally done or believed.