Multiple Choice Quiz: If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year, what is its profit margin? a. 20% c. $285,000 e. 5% b. 2,000% d. $315,000.

Q: The income statement for Forklift Electrical Ltd for two years are shown below: Forklift Electrical…

A: The question is based on the concept of Business Accounting.

Q: + Q&A Library This year, the company's sales has increas 13 This year, the company's sales has…

A: company uses operating leverage in order to calculate the break even point and it also help for the…

Q: The sales and profit during the years were as follows : Profit Year Sales 2010 2,40,000 30,000 2011…

A: The solution is given below

Q: Razor Trading applies a mark up of 40%. At the start and end of the year, inventory was valued at…

A: Sales - Sales is the amount including profit made by the company over and above the cost incurred on…

Q: Sheryl’s Shipping had sales last year of $13,000. The cost of goods sold was $7,100, general and…

A: Cash flows from operating activities: Cash flows from operating activities is a section of cash flow…

Q: JR's Jigsaws had Sales of $20,000 in the current year. The Cost of Goods Sold was  $13,000,…

A: Earnings Before Interest and Taxes(EBIT) : EBIT is the level of earning that comes after paying all…

Q: A company reported a sale revenue for $700,000. The gross profit margin is 60% and the selling…

A: Definition: Net income: Net income is the excess amount of revenue that arises after deducting all…

Q: Consider a firm with a 2010 revenue of S60 million and cost of goods sold of $25 million lf the…

A: Weeks of supply = ( Average inventory / Cost of goods sold ) * 52 weeks

Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current…

A: Gross Profit - Selling expenses - Administrative expenses = Operating Income   Operating Income -…

Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 24%.…

A: Operating income: Operating income refers to the income earned from the day-to-day operations. It is…

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 9 percent, a profit margin of 14.70 percent, and…

A: ROA = Net income / Total assets = 9%Profit margin = Net income / Sales = 14.70%Sales = $ 30 million

Q: The balance sheet of ATLF, Inc. reports total assets of $1,950,000 and $2,050,000 at the beginning…

A: Profit margin ratio is calculating by dividing the net income by net sales.

Q: Ryngard Corp’s sales last year were $43,000 and it’s accounts recivable were $16,000. What was its…

A: The question is related to Average Collection period. The Average Collection period or Days Sales…

Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:   Current…

A: The income statement is prepared to know the profits and losses earned by business during the…

Q: If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year,…

A: Profit margin ratio: The profit margin ratio measures the net income generated for every dollar of…

Q: Use the following information to answer question 4-5. Operating data of Peter Company for last year…

A: 4. Turnover  = sales / Average operating assets            1.5 = $900,000 / Average operating assets…

Q: PLease show Solutions for a guide. 1. A firm total sales is 156,000 this year. If the cost of sales…

A: Working note: Computation of cost of sales: Cost of sales=Total sales×Percentage of cost of…

Q: If a firm had sales of $340,000 during a period and sales returns and allowances of $28,000, its net…

A: Net sales are the difference between total sales and sales return and allowances. It indicates the…

Q: Carr Auto Wholesalers had sales of $1,040,000 in 20XX, and the cost of goods sold represented 74…

A: An income statement is the one prepared by the company in a structured manner to determine the net…

Q: Assume the following sales data for a company: Year 2 $562,500 Year 1 $450,000 What is the…

A: SOLUTION- FORMULA= PERCENTAGE INCREASE IN SALES FROM  YEAR 1 TO YEAR 2=  CHANGE IN SALES FROM YEAR 1…

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: The provided information are: ROA = 6% Profit margin = 12.80% Sales = $15 Million

Q: Magic Oaks Realty's net revenue and profit for a five-year period, using 2012 as the base year,…

A: Trend Analysis It is the practice of collecting information and then with the help of that data…

Q: Rappaport Corp.s sales last year were $320,000, and its net income after taxes was $23,000. What was…

A: Profit Margin on Sales = Net Income after taxes / Sales

Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as fo Current Year…

A: Solution : (a). Comparative income statement:   Current year amount Current year percent Previous…

Q: solution star industries has published its annual account. it indicates that during the year the…

A: Operating cash flows refers to the flows of the cash (inflows and outflows both) in the business…

Q: b.) From the given figures relating to the following profitability ratios for the two years: Wick…

A: The ration analysis helps to analyze the financial statements of the business. The gross profit and…

Q: Deton pen Manufacturers sales= $980,000 cost of goods sold represented 64 percent of sales.…

A: Net income of an firm can be calculated by subtracting the cost of goods sold and other expenses…

Q: Mars Corporation has provided the following data for Year 2:       Sales $ 1,330,000   Gross…

A: Calculation of average stockholder's equity: Year 2 = $ 1095000 Year 1 = 1060000 = ( 1095000 +…

Q: A company has a profit margin of 10% and reports net sales of $4,000,000 and average total assets of…

A: Return on assets = Net income / Average total assets where, Average total assets = (Beginning total…

Q: A business has $250,000 income and $60,000 expenses. What is the net profit? Select one: a. 310,000…

A: Net profit means the difference  between the income and expenses.

Q: BTS Co. reported profit after tax of ₱420,000. BT21’s income tax rate is 30%. Operating expenses for…

A: Solution: Profit after tax = P420,000 Profit before tax  =PAT / (1-tax rate) = P420,000 / (1-0.30) =…

Q: A company had a profit margin of 15%. If net income equaled $44,000 and average total assets equaled…

A: Lets understand the basics. For calculating net sales, we need to use below formula. Profit margin =…

Q: Last year, Hassan’s Madhatter, Inc. had an ROA of 5.8 percent, a profit margin of 18.50 percent, and…

A: Basic FrameworkROA = Net income / Total assets = Sales x Profit Margin / Total AssetsHence, Total…

Q: A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: Cost of goods sold: $175,000   Investment income: $2,800   Net sales: $297,000   Operating expense:…

A: Retained earnings refer to the amount accumulated by the entity from its net income that can be used…

Q: Devon Inc. has a profit margin of 16% and an investment turnover of 2.5. Sales revenue is $520,000.…

A: The turnover ratio indicates the sales generated using the total assets of the business. Average…

Q: Damita Company reported net income of $48,025 and net sales of $425,000 for the current year.…

A: Profit margin is the outcome of operating activities of the company. It is the ratio of net income…

Q: Hydroflask reported profit after tax of ₱42,000. Hydro’s income tax rate is 30%. Operating expenses…

A: Profit before tax =  profit after tax / (1 - tax rate) = ₱42,000 / (1 - 0.30) = ₱60,000

Q: Prepare an income statement for the 3M Companies for the last quarter of the year based on the…

A:

Q: Calculate net profit ratio from the following data: Sales returns 1,00,000 Administration expenses…

A: Net Profit is calculated by subtracting all the indirect expenses from the Gross Profit computed and…

Q: Newcomer UsTubeTV (UTV) is a movie and news streaming service. UTV uses a balanced score- card to…

A: Balances Scorecard refers to the process of monitoring and measuring the daily work performance by…

Q: Leon Company uses equity spread in evaluating managerial performance. At year end, the total…

A: Closing Equity Balance = 10,000,000 Increase in Equity = 2,000,000 Opening Equity Balance = Closing…

Q: x Enterprises reports the following information on its year-end income st t Sales $190,000 Operating…

A: Explanation of Concept Gross Profit Percentage is been calculated with the help of following formula…

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A:

Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:   Current…

A: Income statement is one of the vital financial statements of the company which states the revenues…

Q: A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5…

A: Total sales is $64million Gross profit is $12million Operating income of $8.5 million Net income of…

Q: Last year a company had sales of $400,000, average operating assets of $166,667, and a return on…

A: Return on investment = net operating income for the year / average operating assets where, Average…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is