Multiple choice

1. Which of the following is the botXXXXX XXXXXne on the income statement?

A. The gross profit 

B. The net sales 

C. The total operating expenses

D. The net income (or loss)

2. A party supplies store recorded net sales of $423,400 for the year. The store’s beginning

inventory at retail was $105,850 and its ending inventory at retail was $127,020. What

would be the inventory turnover at retail, rounded to the nearest tenth?

A. 1.8 

B. 3.3 

C. 3.6

D. 4.0

3. Ramon owns a home that was appraised for $132,600. Ramon’s credit union is willing to

loan an amount up to 70% of the appraised value of a home. Based on this information,

what is the maximum potential amount of credit that’s available to Ramon for a home

equity loan?

A. $92,820 

B. $89,340 

C. $62,538

D. $49,560

4. James has opted for a 20-payment life insurance policy of $200,000. James is 42 years

old. What is his annual premium?

A. $3,722.00 

B. $4,062.00 

C. $7,318.00

D. $10,000.00