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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. $Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. \begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\\begin{array}{lr} \text { Net sales } & \$ 24,000 \\ \text { Costs of goods sold } & \underline{8,000} \\ \text { Gross margin } & \$ 16,000 \\ \text { Operating expenses } & \underline{8,000}\\ \text { Income before income taxes }&\$8,000 \\ \text { Income taxes }& \underline{3,200}\\ \text {Net income } & \$4,800 \end{array}\end{array} The profit margin of Abner Systems is A) 60 percent. B) 25 percent. C) 20 percent. D) 12 percent.$ $\begin{array}{c}\text {Abner Systems, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{lr}\text { Net sales } & \$ 24,000 \\\text { Costs of goods sold } & \underline{8,000} \\\text { Gross margin } & \$ 16,000 \\\text { Operating expenses } & \underline{8,000}\\\text { Income before income taxes }&\$8,000 \\\text { Income taxes }& \underline{3,200}\\ \text {Net income } & \$4,800 \end{array}\end{array}$
The profit margin of Abner Systems is

Definitions:

Health Care Departments

Divisions within organizations dedicated to managing health services, policies, and practices.

Participative Management Style

A leadership approach where employees at all levels are involved in the decision-making processes of the organization.

Educated and Sophisticated Staff

Employees who possess a high level of education and exhibit refined and complex skills.

People-Centered Management

A management approach that prioritizes the well-being and development of employees.