syllabus-2017 Fall Term × \\ CHAPTER 7 Budgeting.. x Recitation,11192017 coezto.
ID: 2592772 • Letter: S
Question
syllabus-2017 Fall Term × CHAPTER 7 Budgeting.. x Recitation,11192017 coezto.mheducation.com/hm..tpx : AppsDoorman jobs-Inde Bois d Argent on Dio h Product Dunk ND H M McGraw -2 x Financial data for Redstone Company for last year appear below Redstone Company Statements of Financial Position Beginning Ending Balance Balance Assets Cash Accounts receivable Inventory Plant and equipment (net) Investment in Balsam Company Land (undeveloped) S 292,000 S 381,892 182,000 257.000279,000 433,000 333,000 278 000278.000 196,000 Total assets $1,812.000 $1.885,892 Liabilities and owners' equity Accounts payable Long-term debt Owners equity s 191.000 $ 140,000 351,892 $1,812,000$1.886,892 726,000 Tatal liabilities and ouners equity Redstone Company Income statement Sales Less operating exponses 2.730 00D 2 098 450 1 550 Net operating income Less interest and iaxes interest expense Tax expense s 98 700 230 958 e58 Net 1.892 O Type here to searchExplanation / Answer
The profit margin ratio, also called the return on sales ratio or gross profit ratio, is a profitability ratio that measures the amount of net income earned with each dollar of sales generated by comparing the net income and net sales of a company. In other words, the profit margin ratio shows what percentage of sales are left over after all expenses are paid by the business.
Profit margin ratio = Net Income/ Net sales
= 311892/ 2730000
= 0.11
So profit margin ratio is 0.11
-------------------------------------------------------------------------------------------------------------------------------------
Hope that helps.
Feel free to comment if need further assistance J
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.