Johnson Supply Company Had Sales of $1,000,000,Cost of Goods Sold

Multiple Choice

Johnson Supply Company had sales of $1,000,000,Cost of goods sold was $600,000 and operating expenses were $340,000.The beginning cash balance was $400,000 and the ending cash balance was $220,000.Net cash flows from operating activities were $960,000.What is the company's gross profit ratio?

A) 20%
B) 40%
C) 60%
D) 35%