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Rio Imports Information from the Financial Statements Are Provided Below

Question 103

Multiple Choice

Rio Imports Information from the financial statements are provided below:
20152014 Current Liabilities $460,000$320,000 Long-Term Liabilities 240,000640,000 Stockholders’ Equity 840,0001,080,000 Net Cash Flows from Operating Activities 160,000102,000 Interest and Principal Payments 24,00016,000 Net Sales 950,000900,000 Net Income 180,000144,000 Interest Expense17,00023,000 Income Taxes 32,00029,000 Dividends Paid to Common Stockholders 30,00060,000\begin{array}{lll} & \underline { 2015 } & \underline { 2014 }\\\text { Current Liabilities } &\$ 460,000 & \$ 320,000 \\\text { Long-Term Liabilities } &240,000 & 640,000 \\\text { Stockholders' Equity } &840,000 & 1,080,000 \\\text { Net Cash Flows from Operating Activities } &160,000 & 102,000 \\\text { Interest and Principal Payments } &24,000 & 16,000 \\\text { Net Sales } &950,000 & 900,000 \\\text { Net Income } &180,000 & 144,000 \\\text { Interest Expense} &17,000 & 23,000 \\\text { Income Taxes } &32,000 & 29,000 \\\text { Dividends Paid to Common Stockholders } &30,000 & 60,000\end{array}
-Refer to Rio Imports.The operating margin percentage for 2015 is an indicator that the company has


A) experienced setbacks concerning the effectiveness of its purchasing,production,pricing,and marketing activities.
B) increased profits by $33,000.
C) improved profitability in relation to sales.
D) net income that is more than it would have been if dividends of $30,000 had been paid.

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