Use the following to answer questions 47-49: Selected financial data for Barnsta

Question

Use the following to answer questions 47-49:

Selected financial data for Barnstable Company appear below:

19x9 19x8
(in thousands)
Sales $1,500 $1,200
Operating Expenses 450 400
Interest Expense 75 30
Cost of Goods Sold 900 720
Dividends Declared and Paid 30 0


Question 47: For 19x9, the gross margin as a percentage of sales was:

a 5%.
b 60%.
c 10%.
d 40%.

Question 48: 1 pts For 19x9, the net income before taxes as a percentage of sales was: <br>
For 19x9, the net income before taxes as a percentage of sales was:
a 10%.
b 3%.
c 8%.
d 5%.

Question 49: 1 pts For 19x9, the net operating income as a percentage of sales was: <br>
For 19x9, the net operating income as a percentage of sales was:
a 70%.
b 8%.
c 10%.
d 40%.

Explanation / Answer

Gross Profit = $1,500 - 900 = 600 Gross Margin =600/1,500 =40% gross margin as a percentage of sales= 40% Answer d 40%. Question 48: net income before taxes = $1,500 - 450 - 75- 900 =75 net income before taxes as a percentage of sales=75/1,500 = 5.00% Answer d 5%. Question 49: net operating income =$1,500 - 450 - 900 =150 net operating income as a percentage of sales = 150/1500 = 10% Answer c 10%.

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