First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes ?

Related Mcqs:

1. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

   A. 28.33 %
   B. 29.17 %
   C. 30.12 %
   D. 30.78 %

2. Gross margin is the ratio of the gross profit to _________________?

   A. Net sale
   B. Owner’s equity
   C. Inventory turnover
   D. Quick assets

3. A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified ?

   A. 12.07 %
   B. 12.34 %
   C. 12.67 %
   D. 12.87 %

4. Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%?

   A. P 9,358.41
   B. P 9,228.45
   C. P 9,250.00
   D. P 9,308.45

5. The ratio of the net income before taxes to net sales is called __________________?

   A. Current ratio
   B. Inventory turnover
   C. Profit margin ratio
   D. Price-earnings ratio

6. A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?

   A. P 2,000.00
   B. P 2,100.00
   C. P 2,200.00
   D. P 2,300.00

7. The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as _____________________?

   A. Yield
   B. Economic return
   C. Earning value
   D. Gain

8. A farmer selling eggs at 50 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 12.5%, how much will be his new gain in percent ?

   A. 6.89 %
   B. 6.65 %
   C. 6.58 %
   D. 6.12 %

9. What do you call a one-time credit against taxes ?

   A. Due credit
   B. Tax credit
   C. Credible credit
   D. Revenue credit

10. The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?

    A. Dividend
    B. Return
    C. Share of stock
    D. Equity