Use This Balance Sheet and Income Statement to Answer the Following

question 80

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 current ratio for Abner Systems is (after rounding to two decimal places)

• A) .75.
• B) 1.25.
• C) 1.13.
• D) 1.37.

Identify the components and significance of high-involvement management strategies.

Recognize the role of rewards in shaping organizational behavior and management strategy.

Analyze how organizational strategies such as prospecting or human relations approach affect managerial decisions.

Understand the strategic framework for compensation within companies.

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Definitions:

Petitions

Formal written requests, typically signed by many people, appealing to authority with respect to a particular cause.

Union Organizing Drive

Efforts by workers and union advocates to gather support and formally establish a labor union at a workplace.

Authorization Cards

Documents signed by employees expressing the desire to be represented by a union in collective bargaining.

Bargaining Unit

A group of employees with a clear and identifiable community of interests, represented by a union in dealing with their employer over labor issues.