Use This Balance Sheet and Income Statement for the First

question 74

Multiple Choice

Use this balance sheet and income statement for the first year of operations for Layton Novelties,Inc.to answer the following question.Use ending balances whenever average balances are required for computing ratios. $\begin{array}{c}\text {Abner Systems, Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{lr}\text { Net sales } & \$ 80,000 \\\text { Costs of goods sold } & \underline{32,000} \\\text { Gross margin } & \$ 48,000 \\\text { Operating expenses } & \underline{12,000}\\\text { Income before income taxes }&\$36,000 \\\text { Income taxes }& \underline{14,400}\\ \text {Net income } & \$21,600 \end{array}\end{array}$
The profit margin of Layton Novelties is

• A) 30 percent.
• B) 75 percent.
• C) 60 percent.
• D) 27 percent.

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Observable or felt signs of illness, injury, or the effects of a condition on the body.

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The repetitive and passive focus on symptoms of distress and the possible causes and consequences of these symptoms.