1. The following is selected balance sheet and income statement information for Lopez Company for 2016:

Current Assets$48,062

Gross Profit on Sales$200,680

Net Sales$450,009

Net Income$45,216

Average Total Assets$273,710

Average Common Stockholders' Equity$151,668

Lopez Company's gross profit percentage is 44.6%

True

False

2The following is selected balance sheet and income statement information for Lopez Company for 2016:

Current Assets$48,062

Gross Profit on Sales$200,680

Net Sales$450,009

Net Income$45,216

Average Total Assets$273,710

Average Common Stockholders' Equity$151,668

Lopez Company's return on sales is 20%

True

False

3Income effects of discontinued operations are reported separately from continuing operations on the income statement.

True

False