Assume a companys Income Statement for Year 12 is as follows

Assume a company\'s Income Statement for Year 12 is as follows Year 12 in 000s Income Statement Data Net Revenues from Footwear Sales Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (expenses) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss $320,000 200,000 17,000 45,000 8,000 50,000 (10,000) 40,000 12,000 $28,000 Based on the above data, which of the following statements is false? Cost of pairs sold are 62.5% of net revenues Warehouse expenses are 5.3% of net revenues Marketing costs are 14.1 % of net revenues Interest expenses are 3.6% of net revenues Administrative expenses are 2.5% of net revenues Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation. Copyright 2018 by Glo-Bus Software, Inc.

Solution

interst expense = 10000/320000 = 3.125%

so the option 4th is incorrect or false. Interest expenses are not equal to 3.6%