The following are the income statements for Ace and Diamond Companies. AceDiamondRevenue$70,000 $76,000 Cost of goods sold 49,000  45,600 Gross margin 21,000  30,400 Operating expenses 9,500  12,500 Net income$11,500 $17,900 What are the net income percentages for Ace and Diamond, respectively?

A. 1.83% and 1.70%
B. 16.4% and 23.6%
C. 30% and 40%
D. 6.09% and 4.25%


Answer: B

Business

You might also like to view...

When an entity's revenues exceed its expenses for a period of time, the entity will report net income

a. True b. False Indicate whether the statement is true or false

Business

Failure to record inventory in the proper period can affect all of the following accounts except:

A. prepaid Expenses. B. sales. C. receivables. D. cost of Goods Sold.

Business

Which of the following is not true about the costs and benefits of R&D limited partnerships?

A. Most take less than three months to establish B. Risk is reduced C. Most are not successful D. Costs can be high to create the partnership

Business

Edward wishes to save enough money to purchase a retirement lake cabin. He is willing to spend $500,000 for the cabin and he can save $25,000 per year and invest the money into an account earning 8.00% per year

If Edward's investments come in the form of equal annual end-of-the-year cash flows and the first cash flow is in exactly one year, how long will it take him to save enough money to buy the lake cabin? A) Between 8 and 9 years B) Between 10 and 11 years C) Between 12 and 13 years D) Exactly 20 years

Business