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adoni [48]
3 years ago
9

Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover i

s 1.2. What is the profit margin?
Business
1 answer:
Westkost [7]3 years ago
6 0

Answer:

It is 6.58%

Explanation:

Debt-Equity Ratio = Debt/Equity

0.68= Debt/358,200

Debt = 0.68 x 358,200

Debt = $243,576

Total Asset Turnover = Revenue/ Total Asset

Total Assets = Debt + Equity = $243,576+ $358,200=$601,776

1.2= Revenue/601,776

Revenue= 1.2 x 601,776

              =$722,131.20

Profit Margin = Net income/ Revenue x 100%

                       = $47,500/$722,131.20 x100%

                       = 6.58%

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