Answer:
- If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
- If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE
Explanation:
there are several profitability ratios, the most important ones are:
- profit margin = net profit / total revenue
- gross profit margin = gross profit / total revenue
- return on equity = net income / total shareholder equity
- return on assets = net income / total assets
Answer:
The correct answer is:
0.50 (B)
Explanation:
The Lerner index is used by monopolists to measure market/monopolist power, and it is defined as the percent markup of price over marginal cost.
It is given by the formula:
Note: in a perfectly competitive market, L = 0, which makes Price = Marginal cost in the equation above. But in a competitive market, it is always the case that L ≥ 0
Answer: Option (2)
Explanation:
Engagement letter is referred to as an or known as an agreement for the services firm in order to provide the services to the client. This letter is known to be essentially an abbreviated agreement which defines services that are to be performed and also amount of the compensation that is to be paid. These letters are mostly required by the service firms that are engaged in the audit, tax, consulting, finance and legal advice.
Answer:
The property will be depreciated using the remaining 3 years of its life after the tax-free incorporation transfer year. This is because Dan had already depreciated the property for 2 years before the transfer.
Explanation:
Sec. 351 allows a tax-free incorporation transfer if certain requirements are met, including that the property must be transferred to Fleck Corporation by Dan in exchange for stock in Fleck Corporation, and, immediately after the exchange, the Fleck Corporation is in control.
Answer:
Trade Surplus and positive net Capital flow
Explanation
