Simple Simon's Balance Sheet and Income Statement Accounts Follow What Is Simple Simon's Gross Margin Ratio for 2010?
A)65

question 53

Multiple Choice

Simple Simon's balance sheet and income statement accounts follow:
$\begin{array}{lrrr}\text { At December } 31&2011&2010&2009\\\text { Assets }\\\text { Cash } & \$ 30,872 & \$ 36,086 & \$ 37,974 \\\hline \text { Accounts receivable, net } & 89,476 & 63,151 & 50,632 \\\hline \text { Merchandise inventory } & 112,499 & 83,450 & 54,467 \\\hline \text { Prepaid expenses } & 9,942 & 9,473 & 4,219 \\\hline \text { Plant assets, net } & 291,143 & 268,126 & 244,108 \\\text { Total assets } & \$ 533,932 & \$ 460,286 & \$ 391,400\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 130,290 & \$ 76,233 & \$ 50,632 \\\hline \text { Long-term notes payable secured by } & 98,372 & 103,748 & 107,769 \\\text { mortgages on plant assets } & 142,500 & 132,500 & 102,500 \\\hline \text { Common stock, } \$ 10 \text { par value } & 182,770 & 147,805 & 130,499\\\text { Total liabilities and equity }&\$533.932&\$460,286&\$391,400\end{array}$

What is Simple Simon's gross margin ratio for 2010?

• A)65%
• B)35%
• C)67%
• D)33%
• E)39%

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Definitions:

UCC

A set of detailed legislative provisions known as the Uniform Commercial Code is designed to oversee commercial activities across the United States.

Negotiable Instruments

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Article 3

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Negotiability

The characteristic of a document, such as a check or bill of exchange, that allows it to be transferred or endorsed from one party to another in legal transactions.