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Exhibit 6-2 Given the Following Information for the Green Company

Question 70

Multiple Choice

Exhibit 6-2 Given the following information for the Green Company:
 Net sales (all on account)  $5,200,000 Interest expense 240,000 Income tax expense 280,000 Net income 420,000 Income tax rate 40% Total assets:  January 1,2010$1,800,000 December 31,20102,400,000 Stockholders’ equity:  January 1,20101,500,000 December 31,20101,600,000 Current assets, December 31,2010700,000 Quick assets, December 31,2010400,000 Current liabilities, December 31, 2010 300,000 Net accounts receivable:  January 1,2010200,000 December 31,2010180,000\begin{array}{ll}\text { Net sales (all on account) } & \$ 5,200,000 \\\text { Interest expense } & 240,000 \\\text { Income tax expense } & 280,000 \\\text { Net income } & 420,000 \\\text { Income tax rate } & 40 \%\\\text { Total assets: }\\&\text { January } 1,2010 & \$ 1,800,000 \\&\text { December } 31,2010 & 2,400,000\\\text { Stockholders' equity: }\\&\text { January } 1,2010 & 1,500,000 \\&\text { December } 31,2010 & 1,600,000\\\text { Current assets, December } 31,2010 & 700,000 \\\text { Quick assets, December } 31,2010 & 400,000 \\\text { Current liabilities, December 31, 2010 } & 300,000\\\text { Net accounts receivable: }\\&\text { January } 1,2010 & 200,000 \\&\text { December } 31,2010 & 180,000\end{array}
- Refer to Exhibit 6-2.Green's 2010 profit margin was


A) 8.1%
B) 10.8%
C) 13.5%
D) 18.1%

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