The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.
It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
<h3>How do we calculate net profit margin?</h3>
Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.
<h3>What is good net profit ratio?</h3>
For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.
Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.
Learn more about net profit margin here:
<h3>
brainly.com/question/22024991</h3>
<h3>#SPJ4</h3>
Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Bonds payable Dr, $1,030,000
Loss on retirement of bond Dr, $78,800
($1,091,800 - $1,013,000)
To discount on bond $17,000
To cash $1,091,800
($1,030,000 × 106%)
(Being retirement of the bonds is recorded)
Answer:
$40,960
Explanation:
The computation of the operating cash flow is shown below;
As we know that
Annual Operating Cash Flow is
= EBIT × (1 - Tax Rate) + Depreciation Expenses
Here,
Earnings Before Interest & Tax [EBIT] = Revenues - Variable Cost - Fixed Costs - Depreciation Expenses
= $247,700 - $137,600 - $56,500 - $22,000
= $31,600
Now
Annual Operating Cash Flow = EBIT × (1 - Tax Rate) + Depreciation Expenses
= $31,600 × (1 - 0.40) + $22,000
= [$31,600 × 0.60] + $22,000
= $18,960 + 22,000
= $40,960
