Grass Gadgets Had Sales of $30 Million and Net Income

question 29

Multiple Choice

Grass Gadgets had sales of $30 million and net income of $2 million in 2008.Grass paid a dividend of $1.5 million.Assuming that their beginning balance for retained earnings was $3 million,calculate their ending balance for retained earnings.

• A)$2.5 million
• B)$3 million
• C)$3.5 million
• D)$4 million

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Definitions:

Sales Potential

The maximum total sales of a product or service that could be achieved within a specific market over a given time period.

Follow-Up

Maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.

Selling Process

A series of steps taken by sales professionals to identify prospective buyers, communicate value, and close sales transactions.

Customer Relationship Marketing

Customer relationship marketing is a strategy that focuses on building and maintaining long-term, engaging relationships with customers to foster loyalty and repeat business.