Tom Vernon is puzzled. His company had a profit margin of 10% in 2014. He feels that

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Tom Vernon is puzzled. His company had a profit margin of 10% in 2014. He feels that this is an indication that the company is doing well. Andrea Travis, his accountant, says that more information is needed to determine the company’s financial well-being.
Who is correct? Why?

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Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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