Katz Group Had the Following Income Statement for the Month

question 112

Multiple Choice

Katz Group had the following income statement for the month of May.
$\begin{array}{l}\text { Sales revenue } &&\$428,000\\\text { Cost of goods sold } &&205,440\\\text { Gross margin }&&222,560\\\text { Less: }\\&\text { Selling expenses }&81,320\\&\text { Administrative expenses }&72,760\\\text { Operating income }&&\$68,480\end{array}$
-Refer to the Figure.What was the administrative expense percentage?

• A)15%
• B)16%
• C)17%
• D)19%

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Definitions:

Economic Expansion

A phase of the business cycle where economic activity is increasing, characterized by higher production, employment, and income.

Outstanding Shares

The total number of shares of stock that are currently owned by all shareholders of a company, including shares held by institutional investors and restricted shares.

Cost of Debt

The effective rate that a company pays on its current debt, including loans and bonds.

Repurchasing Stock

When a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.