Selected information for 5 companies is reproduced below: a) Calculate the net profit ratio for each of the companies below. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) Zcom Inc. X-cell Inc. Velor Inc. Allarco Inc. Gulf Corp. $75,000 Net Income Net Sales Net profit Ratio $93,000 $67,000 $17,000 $15,000 164,000 188,000 96,000 54,000 123,000 b) Which of the companies is the most profitable according to the net profit ratio? c) Which of the companies generates the least profit as a percentage of sales?
Selected information for 5 companies is reproduced below: a) Calculate the net profit ratio for each of the companies below. Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. (For example: 12.34%) Zcom Inc. X-cell Inc. Velor Inc. Allarco Inc. Gulf Corp. $75,000 Net Income Net Sales Net profit Ratio $93,000 $67,000 $17,000 $15,000 164,000 188,000 96,000 54,000 123,000 b) Which of the companies is the most profitable according to the net profit ratio? c) Which of the companies generates the least profit as a percentage of sales?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 25BEB: Jasmine Company provided the following income statements for its first 3 years of operation: Refer...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning