Zhao Jakubowski's Gym bought training machines from the manufacturer on 10/1/2021 and gave a noninterest-bearing note in exchange. Zhao Jakubowski has to pay $953,000 on 4/1/2022 to settle the obligation in full. If Zhao Jakubowski accrued interest of $12,500 on the note in its 2021 year-end financial statements, what is its imputed annual interest rate?

Multiple Choice

• None of these answer choices are correct.

• 8.1%.

• 5.4%.

• 2.7%.

Regidor, Mokaria, & Wong Auto Parts partial income statement for 2021 was as follows:

	2021
Sales	$	435,000
Cost of goods sold:
Inventory, January 1		68,000
Net purchases		333,000
Goods available for sale		401,000
Inventory, December 31		105,000
Cost of goods sold		296,000
Gross profit	$	139,000

The company's 2021 gross profit ratio is: (Round your answer to the nearest whole percentage.)

Multiple Choice

• 23%.

• 32%.

• None of these answer choices are correct.

• 35%.