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2 years ago

________ measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.

1 answer:

8 0

Net Profit Margin measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.

What is Net Profit Margin?

A financial measure called net profit margin can be used to determine what much of a company's total revenue is profit. It gauges how much net profit a business makes for every dollar of revenue generated. The ratio of net profit to total sales, stated as a percentage, is known as the net profit margin.

Net profit is determined by subtracting all business costs from net income. A percentage is the outcome of the profit margin computation; for instance, a 10% profit margin indicates that for every $1 in revenue, the company makes $0.10 in net profit. Revenue represents the entire sales of the company in a period.

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You might be interested in

List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising.

wlad13 [49]

Answer:

Inventory is the complete list of the items or the list of stock such as goods, properties, etc.

Explanation:

Inventory are defined as the stock of the goods and the materials that the business holds in order to ultimate goal of a resale. Inventory management is the discipline that is primarily about specifying shape and the placement of the stocked goods. There are various inventory methods. FIFO as well as LIFO are the important inventory methods.

The full form of FIFO is first in first out while the full form of LIFO is last in first out.

LIFO -- it maximizes the reported income.

Specific unit cost -- they are used for account of the automobiles, art objects and jewelries.

FIFO -- it results in the cost of the ending inventory which is close to current cost of the replacing inventory.

LIFO -- it generally associated with the savings income taxes.

LIFO -- it enables the company to buy a high cost inventory method at the year end.

LIFO -- it results old measure of a cost ending inventory.

Average cost -- it provides the middle ground measure of the ending inventory and also the cost of the goods sold.

FIFO -- it enables the company in order to keep the reported income from the dropping lower by the liquidating of the older layers of the inventory.

applies to all the four methods -- writes the inventory down when the current replacement cost drops to the below historical costs.

LIFO -- it matches the current cost of the goods that are sold against the sales revenue.

8 0

3 years ago

To raise capital, Candace Tyson and Martha Black plan to sell stock to between 108 and 200 investors. They also want to avoid do

makvit [3.9K]

Answer:

The correct answer is A) Regular corporation or C corporation

Explanation:

Because Candance and Martha want to sell shares, they have to form a corporation, be it a C Corporation or an S Corporation, however, they also want to avoid double taxation, therefore, they have to form a C Corporation.

A C Corporation or Regular Corporation is taxed on the income it makes, and nothing else, the profit after deducting taxes is not taxed again. A S Corporation, on the other hand, is taxed both on income and profit.

8 0

3 years ago

The engineering team at Manuel’s Manufacturing Inc. is planning to purchase an enterprise resource planning (ERP) system. The so

AVprozaik [17]

Answer:

a. VENDOR A

Year Cashflow [email protected]% PV Cummulative PV

$ $ $

0 (380,000) 1 (380,000) (380,000)

1 125,000 0.9091 113,638 (266,362)

2 125,000 0.8264 103,300 (163,062)

3 125,000 0.7513 93,913 (69,149)

4 125,000 0.6830 85,375 16,226

Discounted payback period

= 3 years + $69,149/$85,375

= 3.81 years

Vendor B

Year Cashflow [email protected]% PV Cummulative PV

$ $ $

0 (280,000) 1 (280,000) (280,000)

1 95,000 0.9091 86,365 (193,635)

2 95,000 0.8264 78,508 (115,127)

3 95,000 0.7513 71,374 (43,753)

4 95,000 0.6830 64,885 21,132

Discounted payback period

= 3 years + $43,753/$64,885

= 3.67 years

The ERP should be purchased from vendor 2 because it has a shorter payback period.

Explanation:

In this question, we need to discount the cashflows for each project at 10% for 4 years. Then, we will calculate the cummulative present value by deducting the initial outlay from the cash inflows for each year until the initial outlay is fully recovered.

5 0

4 years ago

Please reflect on how the money multiplier concept can be an important tool of both expansionary as well as contractionary monet

Tatiana [17]

The money multiplier concept is an important tool for both expansionary and contractionary monetary policies for any central bank such as the U.S. Federal Reserve Bank.

<h3>What is the money multiplier concept?</h3>

The money multiplier concept describes the quantity of money created by banks through the interaction of bank deposits and reserve ratios.

When the U.S. Federal Reserve wants to increase the money supply, it reduces the reserve ratio and vice versa.

Thus, the money multiplier concept is an important tool for both expansionary and contractionary monetary policies for any central bank such as the U.S. Federal Reserve Bank.

Learn more about the money multiplier concept at brainly.com/question/16777479 and brainly.com/question/27464330

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5 0

2 years ago

A customer establishes a combined margin account by purchasing $10,000 of ABC stock and selling short $10,000 of XYZ stock, depo

Bess [88]

Answer:

Current SMA balance is $15,000

Explanation:

SMA means special memorandum account, where excess margin recouped from investing the fund in customer's margin account is held.

Since ABC was bought for $10,000, while it's current worth is $20,000

Margin recorded = $20,000 - $10,000

= $10,000

XYZ stock sells short at $10,000, while it's current worth is $5,000

Margin recorded on short sell

=$10,000 - $5,000

=$5,000

SMA current balance

= $10,000 + $5,000

= $15,000

8 0

3 years ago