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Use This Balance Sheet and Income Statement to Answer the Following

question 33

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. $\begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Net sales } &\$24,000\\ \text { Costs of goods sold } &8,000\\ \text { Gross margin } &\$16,000\\ \text { Operating expenses} &8,000\\ \text {Income before income taxes } &\$8,000\\ \text { Income taxes } &3,200\\ \text { Net income} &\$4,800\end{array}\end{array}$

$Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. \begin{array}{c} \text {Abner Systems, Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\ \begin{array}{llr} \text { Net sales } &\$24,000\\ \text { Costs of goods sold } &8,000\\ \text { Gross margin } &\$16,000\\ \text { Operating expenses} &8,000\\ \text {Income before income taxes } &\$8,000\\ \text { Income taxes } &3,200\\ \text { Net income} &\$4,800 \end{array}\end{array} The return on assets for Abner Systems is A) 30 percent. B) 150 percent. C) 33-1/3 percent. D) 24 percent.$ The return on assets for Abner Systems is

Definitions:

Physiological Dead Air Space

The volume of the airways where gas exchange does not occur, including parts of the bronchial tree and trachea.

Anatomic Dead Space

The portion of the respiratory system where gas exchange does not occur, including the nose, trachea, and bronchi, where air is moved in and out without being involved in oxygen/carbon dioxide exchange.

Respiratory Membrane

The thin barrier through which gas exchange occurs between the air in the lungs and the blood in capillaries.

Gas Exchange

The process by which oxygen is taken in and carbon dioxide is expelled, primarily occurring in the lungs between air in the alveoli and blood in the capillaries.