Use This Balance Sheet and Income Statement for the First

question 124

Multiple Choice

Use this balance sheet and income statement for the first year of operations for Layton Novelties to answer the following question. Use ending balances whenever average balances are required for computing ratios. Laytan Navelties
Income St-tement
Far the Year Ended December 31, 2010
$\begin{array}{lr}\text { Net sales } & \$ 80,000 \\\text { Cost of goods sold } & 32,000 \\\text { Gross margin } & \$ 48,000 \\\text { Operating expenses } & 26,400\\\text { Net income }&\$21,600\end{array}$ The debt to equity ratio for Layton Novelties is

• A) 16-2/3 percent.
• B) 20 percent.
• C) 80 percent.
• D) 83-1/3 percent.

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Definitions:

Pain Medication

Drugs or substances specifically used to relieve pain, ranging from over-the-counter analgesics to prescription opioids.

Cesarean Sections

A surgical procedure used to deliver a baby through incisions made in the mother's abdomen and uterus.

Postoperative Infections

Infections that occur after a surgical procedure, which can impact recovery times and overall patient health.

Epidural Anesthesia

A form of regional anesthesia that blocks pain in a particular area of the body, often used during childbirth to relieve labor pain without affecting consciousness.