Use This Balance Sheet and Income Statement for the FirstThe Profit Margin of Layton Novelties Is A) 30 Percent

The Answer of Use This Balance Sheet and Income Statement for the FirstThe Profit Margin of Layton Novelties Is A) 30 Percent

Use This Balance Sheet and Income Statement for the FirstThe Profit Margin of Layton Novelties Is A) 30 Percent

The Answer of Use This Balance Sheet and Income Statement for the FirstThe Profit Margin of Layton Novelties Is A) 30 Percent

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Use This Balance Sheet and Income Statement for the First

question 123

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. $\begin{array}{c} \text {Layton Novelties. Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Net sales } &\$80,000\\ \text { Costs of goods sold } &32,000\\ \text { Gross margin } &\$48,000\\ \text { Operating expenses} &12,000\\ \text {Income before income taxes } &\$36,000\\ \text { Income taxes } &14,400\\ \text { Net income} &\$21,600\end{array}\end{array}$

$Use this balance sheet and income statement for the first year of operations for Layton Novelties,Inc.to answer the following question.Use ending balances whenever average balances are required for computing ratios. \begin{array}{c} \text {Layton Novelties. Inc.}\\ \text {Income Statement}\\ \text {For the Year Ended December 31, 2010}\\ \begin{array}{llr} \text { Net sales } &\$80,000\\ \text { Costs of goods sold } &32,000\\ \text { Gross margin } &\$48,000\\ \text { Operating expenses} &12,000\\ \text {Income before income taxes } &\$36,000\\ \text { Income taxes } &14,400\\ \text { Net income} &\$21,600 \end{array}\end{array} The profit margin of Layton Novelties is A) 30 percent. B) 75 percent. C) 60 percent. D) 27 percent.$ The profit margin of Layton Novelties is

Definitions:

Aging Accounts Receivable

A method of managing accounts receivable by categorizing them according to the length of time an invoice has been outstanding.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Effect On Sales

The impact or change in the volume of sales as a result of a specific action or market condition.

Collectible

Items that are valued and sought after by collectors due to their rarity, condition, beauty, or personal emotional connection.