Rio Imports Information from the Financial Statements Are Provided Below

question 45

Multiple Choice

Rio Imports Information from the financial statements are provided below:
$\begin{array}{lll} & \underline { 2015 } & \underline { 2014 }\\\text { Current Liabilities } &\$ 460,000 & \$ 320,000 \\\text { Long-Term Liabilities } &240,000 & 640,000 \\\text { Stockholders' Equity } &840,000 & 1,080,000 \\\text { Net Cash Flows from Operating Activities } &160,000 & 102,000 \\\text { Interest and Principal Payments } &24,000 & 16,000 \\\text { Net Sales } &950,000 & 900,000 \\\text { Net Income } &180,000 & 144,000 \\\text { Interest Expense} &17,000 & 23,000 \\\text { Income Taxes } &32,000 & 29,000 \\\text { Dividends Paid to Common Stockholders } &30,000 & 60,000\end{array}$
-Refer to Rio Imports.The operating margin percentage for 2015 is an indicator that the company has

• A)experienced setbacks concerning the effectiveness of its purchasing,production,pricing,and marketing activities.
• B)increased profits by $33,000.
• C)improved profitability in relation to sales.
• D)net income that is more than it would have been if dividends of $30,000 had been paid.

---

Definitions:

HR Programs

The range of services, policies, and programs designed and executed by the human resources department of an organization to attract, develop, and retain a competent and engaged workforce.

Stakeholder Groups

Collectives of individuals or organizations with an interest or stake in the outcome of a particular project, decision, or endeavor.

Shareholder Wealth

The total value of an investment in a firm as measured by the stock price and dividends, reflecting the financial health and performance of the company.

HR Strategy

Strategy within human resources that aligns with the overall organizational strategy to ensure effective use of people in achieving organizational goals.