QUESTION 1 LCO1: Joe's Pool Store has a Profit Margin Ratio of 1796. What does this tell an investor? 17% of Joe's profits will be paid to investors For every $1 in Net Sales, 17 cents will go to Net Income Joe's Cost of Goods Sold is 83% Joe had a Net Loss for the period QUESTION 2 LCO:1 Please see the below trend analysis: If Year 1 is the base year, what percentage do Year 3 sales represent of the base? Rose Garden Corporation reported the following sales: Year 1 $800,000 Year 2 $780,000 Year 3 $880,000 9896 110% 10% 130% LCO:1 Using vertical analysis, what percentage is assigned to gross profit? Georgia Peach, Inc. has the following Income Statement (in millions): Georgia Peach, Inc. Income Statement For the Year Ended 12/31/XX Net Sales $150 Cost of Goods Sold (90) Gross Profit $60 Operating Expenses (40) INet Income 4096 13.396 33.396 30096 QUESTION 4 LCO:2 What cost would Karla estimate for 1 order of 4 baked goods if she estimates it will take 10 mixing hours? Karla's Bakery uses activity based costing. Karla has several activities that she tracks: Dollars Activity Mixing $7,000 250 mixing hours Baking $6,000 800 baked goods Packaging $1,500 100 orders $45 $202 $325