FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question4
The following information was taken from Campbell's financial statements:
Dividends: $500 thousand
Cash: $2 billion
Cash provided from operating activities: $890 million
Sales: $10 billion
Cost of Goods Sold: $7 billion
Total Expenses: $2 billion
Which is the following is true:
O Gross profit margin is 70%
O The Gross profit cannot be calculated
For every dollar that they sell they generate 10% in net income
O The $500 thousand of dividends is a reduction to net income
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Transcribed Image Text:Question4 The following information was taken from Campbell's financial statements: Dividends: $500 thousand Cash: $2 billion Cash provided from operating activities: $890 million Sales: $10 billion Cost of Goods Sold: $7 billion Total Expenses: $2 billion Which is the following is true: O Gross profit margin is 70% O The Gross profit cannot be calculated For every dollar that they sell they generate 10% in net income O The $500 thousand of dividends is a reduction to net income
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