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1. Cost of goods is found on the:
a. Balance sheet
b. income statement
c. Statement of retained earnings
d. none of the above
2. If Profit margin ratio is .10 and net income is 10, then shareholders equity is :
A. 100
b. 80
c. 60
d. Unble to determine from data given
3. If gross profit is 20 and net sales are 100 the gross margin ratio is:
a .10
b .15
c. .20
d. .25
4. Sales less cost of goods sold yields
a. Operating income
b. EBIT
c. Gross margin
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