Following Are the Financial Statements for Starman Corporation for the Year

question 160

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31, 20xx. Assume that all balance sheet amounts represent both average and ending figures.
$\begin{array}{|l|}\hline \text { Starman Corporation } \\\hline \text { Balance Sheet } \\\hline \text { December } 31,20 x x \\\hline \text { Assets }\\\hline\end{array}$

$\begin{array}{|l|l|}\hline \text { Cash } & \$ 20,000 \\\hline \text { Marketable securities } & 30,000 \\\hline \text { Accounts receivable } & 50,000 \\\hline \text { Inventory } & 100,000 \\\hline \text { Long-term receivables } & 35,000 \\\hline \text { Property, plant, and equipment } & 65,000 \\\hline \text { Total assets } & \$ 300,000 \\\hline\end{array}$

$\begin{array}{l}\hline \begin{array}{|l|l|}\text { Liabilities and Stockholders' Equity }\\\hline \text { Current liabilities } & \$ 100,000 \\\hline \text { Long-term liabilities } & 60,000 \\\hline \text { Stockholders' equity } & 140,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}\end{array}$

$\begin{array}{|l|}\hline \text { Starman Corporation } \\\hline \text { Income Statement } \\\hline \text { For the Year Ended December } 31,20 \mathrm{xx} \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Net sales } & \$ 400,000 \\\hline \text { Cost of goods sold } & 240,000 \\\hline \text { Gross margin } & \$ 160,000 \\\hline \text { Operating expenses } & 40,000 \\\hline \text { Income before income taxes } & \$ 120,000 \\\hline \text { Income taxes expense } & 30,000 \\\hline \text { Net income } & \$ 90,000 \\\hline\end{array}$
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What is the profit margin for this corporation? Round your answer to one decimal place.

• A) 22.5 percent
• B) 30.0 percent
• C) 40.0 percent
• D) 53.3 percent

Realize the role of forestalling in addressing anticipated objections before they arise.

Distinguish between different types of objections e.g., practical, source, true, and hopeless objections.

Understand the importance of listening to, and addressing, prospects' objections effectively in sales.

Know strategies for responding to objections and conditions of sale, including negotiation and turning objections into conditions of sale.

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Definitions:

Approximately Normally Distributed

Refers to a data set or population that closely follows a normal distribution, characterized by a bell-shaped curve.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Finite Population Correction

An adjustment made to the standard formula for calculating sample size and variance when the sample size is a significant fraction of the total population.

Non-normal Probability Distribution

Describes a distribution of data that does not follow the normal distribution pattern, showing skewness or kurtosis different from a bell-shaped curve.