Litten Corporation's most recent income statement appears below: Sales (all on account)..........................$791,000 Cost of goods sold...............................412,000 Gross margin.....................................379,000 Selling and administrative expense...............214,000 Net operating income.............................165,000 Interest expense..................................34,000 Net income before taxes..........................131,000 Income taxes......................................40,000 Net income........................................91,000 The gross margin percentage is closest to: A) 92.0% B) 416.5% C) 24.0% D) 47.9%
Litten Corporation's most recent income statement appears below: Sales (all on account)..........................$791,000 Cost of goods sold...............................412,000 Gross margin.....................................379,000 Selling and administrative expense...............214,000 Net operating income.............................165,000 Interest expense..................................34,000 Net income before taxes..........................131,000 Income taxes......................................40,000 Net income........................................91,000 The gross margin percentage is closest to: A) 92.0% B) 416.5% C) 24.0% D) 47.9%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Litten Corporation's most recent income statement appears below:
Sales (all on account)..........................$791,000
Cost of goods sold...............................412,000
Gross margin.....................................379,000
Selling and administrative expense...............214,000
Net operating income.............................165,000
Interest expense..................................34,000
Net income before taxes..........................131,000
Income taxes......................................40,000
Net income........................................91,000
The gross margin percentage is closest to:
A) 92.0%
B) 416.5%
C) 24.0%
D) 47.9%
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