Use This Information to Answer the Following Question The Amount of Net Sales on the Income Statement Would

question 114

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows:
$$\begin{array} { l r } \text { Advertieing Esguense } & 14,000 \\\text { Common Stock } & 100,000 \\\text { Dividends } & 21,000 \\\text { Fraight-In } & 7,000 \\\text { Freight-Out Esgense } & 10,000 \\\text { Interest Income } & 24,000 \\\text { Merchandise Inventory (Jan. 1) } & 70,000 \\\text { Merchandise Inventory (Dec. 31) } & 56,000 \\\text { Purchases } & 60,000 \\\text { Purchases Returns and Allowances } & 4,000 \\\text { Rent Exgense } & 9,000 \\\text { Retained Earning } & 40,000 \\\text { Sales } & 150,000 \\\text { Sales Returns and Allowances } & 19,000 \\\text { Wages Engense } & 32,000\end{array}$$ The amount of net sales on the income statement would be

• A) $169,000.
• B) $144,000.
• C) $131,000.
• D) $137,000.

Appreciate the significance of changes in financial statement figures over time.

Calculate dividends and understand their impact on shareholders' equity and net income.

Understand the calculation and significance of earnings per share.

Interpret the effects of depreciation on operating expenses and net income.

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Definitions:

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Competitive Price-searcher

A market participant that actively seeks out and compares prices in order to find and exploit competitive price advantages.

Marginal Revenue

The revenue gain from selling one more unit of a good or service.