The Information That Follows Relates to Kravitz Corporation

question 27

Multiple Choice

The information that follows relates to Kravitz Corporation:
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
On the basis of this information, the company's sales revenue is:

• A) $1,500,000.
• B) $3,000,000.
• C) $10,000,000.
• D) $40,000,000.
• E) None of the other answers are correct.

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Definitions:

Federal Unemployment Taxes

Taxes paid by employers to the federal government to fund unemployment benefits and job service programs.

Insurance Pension Plans

Retirement plans that combine the benefits of insurance and savings, providing income after retirement through periodic premiums paid during a worker’s employment.

Salaries And Wages Payable

A liability account that represents the amounts owed to employees for work performed but not yet paid.

Medical Insurance Deductions

Amounts subtracted from an employee's gross pay for health insurance premiums, often part of an employer-sponsored health plan.