Which of the following statements about the Federal Application for Student Aid (FAFSA) is TRUE? AYou can only apply online. BTh
2 answers:
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Answer:
B. Gross profit decreased from 28.6% to 26.5%
Explanation:
As for the provided information, we have
Particulars Year 2016 Year 2015
Sales $38,537 $47,011
Cost of goods sold $28,309 $33,546
Gross Profit $10,228 $13,465
Gross profit as a percentage of sales shall be:
Year 2016 =
Year 2015 =
As the percentage is higher of 2015 by 0.1%
The statement B which states that the gross profit has reduced is correct.
Answer:
a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.
Explanation:
Assets turnover ratio =
Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.
Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.