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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:

Conjunction

A word used to connect clauses or sentences or to coordinate words in the same clause.

Counterfactual Thinking

The mental process of imagining alternative outcomes to events that have already occurred, often focusing on "what could have been."

Meta-Cognition

Self-awareness and understanding of one’s own thought processes, or thinking about one's own thinking.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over individual desires or achievements.