The Following Is the Income Statement of a Firm Its Return on Sales Is:
A) 10

question 107

Multiple Choice

The following is the income statement of a firm. $\begin{array}{lr}\text { Sales } & \$ 100,000 \\\text { COGS } & 80,000\\\text { GrossProfit } & 20,000 \\\text { Cash Expenses } & 8,000 \\\text { Depreciation } & 1,600\\\text { EBIT } & 10,400 \\\text { Interest } & 800\\\text { EBT } & 9,600 \\\text { Taxes } & 3,600\\\text { Net Income }&\$6,000\end{array}$ Its return on sales is:

• A) 10.4%.
• B) 9.6%.
• C) 6.0%.
• D) 20.0%.

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Definitions:

Moods

Long-lasting emotional states that are less intense and less specific than emotions and do not necessarily have a contextual stimulus.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) antidepressant used to treat depression, OCD, and several other conditions.

Depression

A mental health disorder characterized by persistent feelings of sadness, loss, or anger that interfere with a person’s everyday activities.

Antidepressant Drugs

Drugs that act as mood elevators for people with severe depression and are also prescribed to treat some anxiety disorders.