Compute the profit margin ratio for year 2013.

Question:

The condensed financial statements of Soule Company for the years 2013 and 2014 are presented below.

Soule Company
Balance Sheets (in EUR)
December 31
	2014	2013
Current Assets
Cash and cash equivalents	330	360
Accounts receivable (net)	470	433
Invnetory	430	390
Prepaid expenses	120	160
Total Current Assets	1,350	1,343
Property, plant, and equipment	420	380
Investments	10	10
Intangibles and other assets	530	510
Total Assets	2,310	2,243

Current Liabilities	900	810
Long-term liabilities	390	393
Stockholders' equity - common	1,020	1,040
Total liabilities and stockholders' equity	2,310	2,243

Soule Company
Income Statements
For the year ended December 31
	2014	2013
Sales revenue	4,000	3,600
Cost and expenses
Cost of goods sold	984	895
Selling and administrative expenses	2,400	2,330
Internet expenses	10	20
Total costs and expenses	3,394	3,245
Income before income taxes	606	355
Income tax expense	242	142
Net income	364	213

Compute the profit margin ratio for year 2013.

Net Income:

Net income is determined in the income statement and it presents the difference between the revenues generated and the expenses incurred. The income statement starts with determining the gross profit, then the operating income which is followed by net income at last.

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Compute the profit margin ratio for year 2013.

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Net Income:

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