Use This Balance Sheet and Income Statement to Answer the Following

question 9

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. $\begin{array}{c}\text {Abner Systems, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{lr}\text { Net sales } & \$ 24,000 \\\text { Costs of goods sold } & \underline{8,000} \\\text { Gross margin } & \$ 16,000 \\\text { Operating expenses } & \underline{8,000}\\\text { Income before income taxes }&\$8,000 \\\text { Income taxes }& \underline{3,200}\\ \text {Net income } & \$4,800 \end{array}\end{array}$
The profit margin of Abner Systems is

• A) 60 percent.
• B) 25 percent.
• C) 20 percent.
• D) 12 percent.

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Definitions:

External Factor

Influences originating outside of an organization that can affect its performance, such as economic conditions, competition, or regulatory changes.

Offers-applicants Ratio

The ratio of job offers given to the number of applicants, indicating the selectiveness or competitiveness of the hiring process.

Recruitment Strategy

A planned approach of identifying and attracting candidates to fill job vacancies within an organization.

Recruiting Method

Strategies and techniques used by organizations to find, attract, and hire candidates for job positions.