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3 years ago

Financial information is presented below:

Business

1 answer:

VARVARA [1.3K]3 years ago

8 0

Answer:

Net Income $21,000

Net Sales $140,000

Operating Margin ratio = 14%

Explanation:

Net Income is calculated by subtracting operating expenses from gross income.

Net is is calculated by adjusting contra sales account balance is sales value+

Profit Margin ratio is the ratio of net profit to sales value.

Sales Revenue 150,000

Sales Discount (3,000)

Sales returns and allowances (7,000)

Net Sales 140,000

Cost of Goods sold (91,000)

Gross Income 49,000

Operating Expenses (28,000)

Operating / Net Income 21,000

In the absence of interest expenses and tax rate operating income is considered as net income.

Operating Margin = ( $21,000 / $150,000 ) x 100 = 14%

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Answer:

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2 years ago

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Answer:

Letter B is correct. Narrowing the gap between theory and practice.

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2 years ago

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Answer:

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Explanation:

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Where:

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2 years ago

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Answer:

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