Use This Information to Answer the Following Question Gross Margin from Sales Would Be
A) $62,000

question 47

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
$\begin{array}{lr}\text { Advertising Expense } & 14,000 \\\text { Common Stock } & 100,000 \\\text { Dividends } & 21,000 \\\text { Freight-In } & 7,000 \\\text { Freight-Out Expense } & 10,000 \\\text { Interest Income } & 24,000 \\\text { Merchandise Inventory (Jan. 1) } & 70,000 \\\text { Merchandise Inventory (Dec. 31) } & 56,000 \\\text { Purchases } & 60,000 \\\text { Purchases Returns and Allowances } & 4,000 \\\text { Rent Expense } & 9,000 \\\text { Retained Earnings } & 40,000 \\\text { Sales } & 151,000 \\\text { Sales Returns and Allowances } & 19,000 \\\text { Wages Expense } & 32,000\end{array}$ Gross margin from sales would be

• A) $62,000.
• B) $55,000.
• C) $74,000.
• D) $68,000.

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Definitions:

Fetus

A developing mammal or human from usually two months after conception to birth.

Human Organism

A living individual of the species Homo sapiens, composed of multiple organ systems.

Outer Cells

Cells located on the outermost layer of a structure or organism, often involved in protective or interface functions.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.