Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 38

Multiple Choice

Exhibit 19-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c} \text { BMC CORPORATION INCOME STATEMENT } \\ \text {FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS') } \\\begin{array}{lr}\text { Net Sales } &\quad\quad\quad\quad\quad\quad\quad \$ 1025 \\\text { Cost of Goods Sold } & \underline {682 }\\ \text { Gross Profit Margin } & 343 \\\text { Depreciation } & 31 \\\text { Operating Expense } & 103 \\\text { Administrative Expense } & \underline {127} \\\text { Operating Profit } & 82\\\text { Interest }\\ \text {Profit Before Taxes}&\frac{27}{55} \\ \text { Taxes } \\ \text {Net Income }&\$\frac{17}{38} \\\end{array}\end{array}$ $\begin{array}{c} \text { BMC CORPORATION BALANCE SHEET } \\ \text { FISCAL YEAR ENDING 12/31/2009 } \\ \text { (DOLLARS IN THOUSANDS) } \\\begin{array}{lll}\text { ASSETS }\\\hline\text { Cash } & \$ 61 \\\text { Accounts receivables } & 286 \\\text { Inventory } & \underline { 354} \\\text { Total current assets } & 701 \\\text { Net fixed assets } & \underline { 802} \\\\\\\\\\\text { Total assets }& \$ 1503\\\end{array}\begin{array}{lll}\text { LIABILITIES }\\\hline\text { Notes payable } & \$ 223 \\\text { Accounts payable } & 152 \\\text { Accruals } & \underline { 32} \\ \text { Total current liabilities } & 407 \\\text { Long term debt } & 306 \\\text { Common stock ( } \$ 1.50 \text { par) } & 102 \\\text { Paid in surplus } & 226 \\\text { Retained earnings } & \underline { 462} \\\text { Total liabilities and } & \\\quad \text { Stockholders' equity } & \$ 1503\end{array}\end{array}$
-Refer to Exhibit 19-1. What was BMC's net profit margin?

• A) 0.058
• B) 0.037
• C) 0.125
• D) 0.015
• E) 0.165

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Definitions:

Energy

The capacity to do work or produce change, existing in forms such as chemical, mechanical, thermal, electrical, and nuclear.

Original Stimulus

The initial stimulus or environmental cue that elicits a natural, unlearned response in classical conditioning before any conditioning takes place.

Weber Fraction Values

Measures that quantify the smallest change in a stimulus that can be perceived, based on Weber's Law, which relates to the just noticeable difference in sensory perception.

Sensory Modalities

Various forms of senses through which living organisms perceive the world, such as sight, sound, smell, taste, and touch.