Feedback\ Check My Work\ Prepare an income statement with proper form. Start with company name, statement type, and date. Total revenue minus total expenses

=

net income\ Conceptual Connection: Compute net profit margin for ERS. Round your answer to two decimal places.\

%

\ If ERS had an incremental increase in revenue of

$100,000

, based on the net profit margin computed, what is the additional potential profit?

$

\ 3. Conceptual Connection: Assume that ERS' net profit margin was

8.5%

in the previous year, As an investor, what conclusions might you draw about ERS' future\ A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.

\ Feedback\ Check My Work\ 2. Net profit margin = Net income divided by sales (or service) revenue.\ 3. Consider changes in profit margin and its relationship to expenses.\ Feedback\ Check My Work\ Partially correct

Check My Work 1. Prepare an income statement with proper form. Start with company name, statement type, and date. Total revenue minus total expenses = net income 2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to two decimal places. % If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS' net profit margin was 8.5% in the previous year, As an investor, what conclusions might you draw about ERS' futul A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.