Assume a company's Income Statement for Year 12 is as follows: Income Statement Data_____________________________ Year 12(in 000s)
Question:
Income Statement Data_____________________________ Year 12(in 000s)
Net Revenues from Footwear Sales......................................$ 280,000
Cost of Pairs Sold............................................................150,000
Warehouse Expenses..........................................................15,000
Marketing Expenses...........................................................35,000
Administrative Expenses......................................................8,000
Operating Profit (Loss) ...................................................... 72,000
Interest Income (expenses) ................................................(10,000)
Pre-tax Profit (Loss) .........................................................62,000
Income Taxes..................................................................18,600
Net Profit (Loss) ............................................................$ 43,400
Based on the above data, which of the following statements is false?
a) Cost of pairs sold are 53.6% of net revenues.
b) Interest expenses are 3.6% of net revenues.
c) Marketing costs are 10.9% of net revenues.
d) Warehouse expenses are 5.4% of net revenues.
e) Administrative expenses are 2.9% of net revenues
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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