PART G 1. If Indiana Ink, Inc. has net sales of $400,000 and cost of goods sold of $300,000, Indiana Ink's gross profit rate is a. b. c. d. 75% 33% 25%. 100%. 2. Financial information is presented below 36,000 150,000 105,000 Operating expenses Sales revenue Cost of goods sold The profit margin would be a. .70 b. .06 C. .30 d. .94 3. Net income will result if gross profit exceeds a. b. c. d. cost of goods sold operating expenses. purchases. cost of goods sold plus operating expenses. 4. Which of the following is a measure of liquidity? a. b. c. d. Working capital Profit margin Earnings per share Debt to assets ratio 5. An advantage of the corporate form of business is that a. b. c. d. it has limited life its owner's personal resources are at stake its ownership is easily transferable via the sale of shares of stock. it is simple to establish