Following Are the Financial Statements for Starman Corporation for the Year

question 137

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31,20xx.Assume that all balance sheet amounts represent both average and ending figures. $$\begin{array} { c } \text { Starman Corporation } \\\text { Balance Sheet } \\\text { December 31, 20xx }\\ \begin{array} { | l r | } \hline { \text { Assets } } \\\text { Cash } & \$ 20,000 \\\text { Marketable securities } & 30,000 \\\text { Accounts receivable } & 50,000 \\\text { Inventory } & 100,000 \\\text { Long-term receivables } & 35,000 \\\text { Property, plant, and equipment } & 65,000 \\\text { Total assets } & \$ 3300,000 \\& \\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 100,000 \\\text { Long-term liabilities } & 60,000 \\\text { Stockholders' equity } & 140,000 \\\text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}\end{array}$$
$\begin{array}{c}\text { Starman Corporation }\\\text { Income Statement }\\\text { For the Year Ended December \( 31,20 xx \) }\\\begin{array}{|lr|}\hline\text { Net sales } & \$ 400,000 \\\text { Cost of goods sold } & 240,000 \\ \text { Gross margin } & \$ 160,000 \\\text { Operating expenses } & 40,000 \\\text { Income before income taxes } & \$ 120,000 \\\text { Income taxes expense } & 30,000 \\\text { Net income } & \$ 90.000 \\\hline\end{array}\end{array}$

What is the profit margin for this corporation? Round your answer to one decimal place.

• A) 22.5 percent
• B) 30.0 percent
• C) 40.0 percent
• D) 53.3 percent

---

Definitions:

Recursive Algorithms

Procedures or methods where the solution to a problem depends on solutions to smaller instances of the same problem.

While Loops

A statement in programming that enables the repeated execution of code as long as a specified Boolean condition remains true.

Limiting Condition

A constraint or restriction defined in a program or system that limits its execution or functionality.

ExampleRecursion

ExampleRecursion typically refers to a demonstration or example that illustrates how recursion works, which is a method where the solution to a problem depends on solutions to smaller instances of the same problem.