Question
A company reports the following account balances at year-end: Account Balance Long-term debt $200,000 Cash 50,000 Net sales 600,000 Fixed assets (net) 320,000 Tax expense
A company reports the following account balances at year-end:
Account | Balance |
Long-term debt | $200,000 |
Cash | 50,000 |
Net sales | 600,000 |
Fixed assets (net) | 320,000 |
Tax expense | 67,500 |
Inventory | 25,000 |
Common Stock | 100,000 |
Interest expense | 20,000 |
Administrative expense | 35,000 |
Retained earnings | 150,000 |
Accounts payable | 65,000 |
Accounts receivable | 120,000 |
Cost of goods sold | 400,000 |
Depreciation expense | 10,000 |
|
|
Additional Information: | |
The opening balance of common stock was $100,000 | |
The opening balance of retained earnings was $82,500 | |
The company had 10,000 common shares outstanding all year | |
No dividends were paid during the year |
For the year just ended, the company has gross margin of
A. 33.3% B. 27.5% C. 24.0% D. 22.7%
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