Financial ratios are useful for evaluating performance but should ...

[michelleunicorn]

Financial ratios are useful for evaluating performance but should not be used for making financial
  projections.
 
  Indicate whether the statement is true or false

Question 2

Rogue Industries reported the following items for the current year:
 
  Sales = 3,000,000; Cost of
  Goods Sold = 1,500,000; Depreciation Expense = 170,000; Administrative Expenses = 150,000;
  Interest Expense = 30,000; Marketing Expenses = 80,000; and Taxes = 300,000. Rogue's gross
  profit is equal to
  A) 1,500,000. B) 1,070,000. C) 1,100,000. D) 770,000.

[Mochi]

Answer to Question 1

FALSE

Answer to Question 2

A