Given the Following Information,calculate the Gross Profit Ratio

question 13

Multiple Choice

Given the following information,calculate the gross profit ratio.

• A)20%
• B)28%
• C)18%
• D)13.33%

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Definitions:

Net Capital Spending

The total expenditure on capital assets, minus any sales of existing assets.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income taxes.

Cash Flow from Assets

The total amount of cash earned from a company's operations, investments, and financing activities.