Use the following information to compute profit margin for each separate company a through e. Net Income

Question:

Use the following information to compute profit margin for each separate company a through e.

Net Income Net Sales

a. $ 4,361 .......$ 44,500

b. 97,706 ....... 398,800

c. 111,281....... 257,000

d. $65,646....... $1,458,800

e. 80,142 ....... 435,500

Which of the five companies is the most profitable according to the profit margin ratio? Interpret that company’s profit margin ratio.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

See More Books

Question Posted: Nov 14, 2013 06:01 AM

See More Questions

Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 40%. Cost of goods sold . . . . . . . . . . . . . . . . . ....
Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 40%. Cost of goods sold Interest expense Loss from an...
Use the following information to compute income from continuing operations and net income. Assume that the income tax rate on all items is 35%. Cost of goods sold . . . . . . . . . . . . . . . . . ....
Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Terns only business since its incorporation in 2011 has been land surveying services. In Terns state of...
Describe the steps of the Delphi Technique.
Find the limit. Use l'Hospital's Rule where appropriate. If there is a more elementary method, consider using it. 3x 3 lim X-1 x-1 In(x)
What are the building blocks of a collaboration diagram?
Foot Locker Inc. is the worlds number one retailer of athletic footwear and apparel. Headquartered in New York City, the company has over 44,000 employees and 3369 retail stores in 23 countries...
The following information pertains to ABC Corporation: Beginning raw materials inventory $37,000 Ending raw materials inventory $45,000 Beginning work-in-process inventory $18,000 Ending...
Complete Keith's tax return including all required schedules and forms using prince edward island as province, using the fillable forms package. Taxpayers Information Taxpayer #1 Name: Keith Dox...
On March 1, 2011, a company paid a $18,000 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the followingtable. Insurance...
Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts...
Choo-Foo Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2016: Choo-Foo has a...
Colleges have increasingly used price sensitivity to formulate financial aid. The more eager the student, the less aid he or she can expect to get. Use elasticity to explain this phenomenon. Is this...
Why would an economist be more hesitant about making an elasticity estimate of the effect of an increase in price of 1 percent than an increase in price of 50 percent?
In the chapter, you saw that an increase in Vermonts minimum wage stimulated a small quantity response. a. What does this tell you about the nature of the labor market in Vermont? (Hint: Think...
Which of the following producers would you expect to support a tax on beer? Which would not? Explain your answer. a. Producers of hard liquor. Cross-price elasticity with beer: 0.11. b. Producers of...
Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The price of tickets rises to $9.50 and attendance rises to 1.4 billion. a. What happened to total revenue? b. If you were...
The conversion of a fatty acid into a fatty acyl-CoA is one step in the utilization of fats: This process occurs in two steps. In the first step, the fatty acid is adenylated by a nucleophilic...
In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items...
Federal courts are part of the executive branch of government. (True/False)
Refer to the information in Exercise. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2015. In Exercise Additional Information a. A $30,000 note payable is...
Lansing Companys 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015 follow. Required Prepare the cash flows from...
Refer to the information in Problem. In Problem Required Prepare the cash flows from operating activities section only of the companys 2015 statement of cash flows using the direct method. LANSING...
reply to this: hoose a king from the Divided Kingdom era that the Kings and Chronicles account both mention and write a thread. Provide a brief synopsis of the king's rule, then analyze how the...
A property manager is preparing a monthly report pursuant to the terms of a property management agreement. This report details actual income received from rent and other fees, along with actual...
Discuss the information provided in the three main financial statements. And if you can only have access to one of these three statements in order to make a decision on whether to invest or not in a...

Use the following information to compute profit margin for each separate company a through e. Net Income

Question:

Step by Step Answer:

a 4361 44500 98 b 97706 398800 245 c 111281 257000 433 d 65646 ...View the full answer

Fundamental accounting principle

Students also viewed these Accounting questions