The condensed financial statements of Soule Company for the years 2013 and 2014 are presented below.
|Balance Sheets (in EUR)|
|Cash and cash equivalents||330||360|
|Accounts receivable (net)||470||433|
|Total Current Assets||1,350||1,343|
|Property, plant, and equipment||420||380|
|Intangibles and other assets||530||510|
|Stockholders' equity - common||1,020||1,040|
|Total liabilities and stockholders' equity||2,310||2,243|
|For the year ended December 31|
|Cost and expenses|
|Cost of goods sold||984||895|
|Selling and administrative expenses||2,400||2,330|
|Total costs and expenses||3,394||3,245|
|Income before income taxes||606||355|
|Income tax expense||242||142|
Compute the profit margin ratio for year 2013.
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.
Answer and Explanation:
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fromChapter 5 / Lesson 21
Study the net profit margin definition and learn how to find net profit margin of a business. See how the formula is used to calculate net profit margin.