Financial statements for Askew Industries for 2016 are shown below (in $000's).
|2016 Income Statement|
|Cost of goods sold||($6,475)|
|Comparative Balance Sheets|
|Property, plant, and equipment (net)||$2,700||$2,800|
|Liabilities and Shareholder's Equity|
Determine the profit margin on sales for 2016.
The profit margin on sales looks at the portion of net profit of a company to the sales earned during the year. The higher the profit margin, the more profit is earned for every dollar of sales.
Answer and Explanation: 1
We assume that the question talks about the net profit margin which is based on the net income and the sales for 2016. The formula is:
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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.