Use This Balance Sheet and Income Statement for the First

question 11

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

The return on assets for Layton Novelties is

• A) 40 percent.
• B) 70 percent.
• C) 18 percent.
• D) 66-2/3 percent.

Understand the role of conditional claims in deductive reasoning.

Analyze the structure and validity of chain arguments.

Understand the structure and components of a syllogism.

Distinguish between valid and invalid deductive arguments.

---

Definitions:

Low Point

This refers to the lowest phase or level, often used in the context of economic cycles to describe the bottom of a recession.

1940s

A decade spanning from 1940 to 1949 characterized by significant events including World War II and the beginning of the Cold War, impacting global politics and economies.

Economic Growth

The increase in the production of goods and services in an economy over a period of time, typically measured as the percent change in GDP.

Agricultural

Pertaining to the science, art, and business of cultivating soil, producing crops, and raising livestock; farming.