Question $16$

$5$ pts

During the current year, Acme Company reports a cost of goods sold of $$300,000,$ a gross margin percentage of $40\%,$ average stockholders' equity of $$250,000,$ and a return on equity of $42\%.$ What is Acme's net profit margin percentage? Round to the nearest whole number and do not enter a percent sign or a decimal point $($e$.$g$.,$ enter $89,$ not $89\mathrm{.}0\%$ or $0\mathrm{.}89).$

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Question $17$

$5$ pts

Acme Company is a calendar$-$year company that engages in various transactions on December $31,20$Y$2.$ Which of the following statements regarding the initial effects of these transactions on Acme's financial statement ratios for $20$Y$2$ is true?

Acme issues common stock for cash and uses the cash to buy back outstanding bonds. These transactions decrease the debt$-$to$-$equity ratio and increase total asset turnover.

Acme obtains a bank loan and uses the cash to purchase merchandise inventory. These transactions increase the equity multiplier but have no effect on return on total assets.

Acme receives cash for services to be performed in $20Y3$ and uses the cash to prepay its rent expense for $20$Y$3.$ These transactions increase the equity multiplier but have no effect on return on equity.

Acme makes a cash sale of inventory at book value and uses the cash to pay a dividend to the shareholders. These transactions increase total asset turnover but have no effect on the net profit margin percentage.

None of the above statements is true.

Ouestion $18$

$5$ nts

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