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2 years ago

Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?

Business

1 answer:

WITCHER [35]2 years ago

3 0

Answer:

57.5%

Explanation:

Data Provided:

Total Sales = $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

Interest = $ 10,000

Taxes = $ 5,000

Now,

the operating profit is the from the income before the taxes and interest. Thus,

the interest and taxes will be included in the net income for the operating profit

therefore,

The operating profit = income + Interest + Taxes

The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000

Now,

the operating profit margin = ( Operating profit / Sales ) × 100

= ( $ 115,000 / $200,000 ) × 100 = 57.5%

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Answer:

Explanation: please refer to the explanation section

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Modified Accelerated Cost recovery System

The Fixed Asset Falls under the 3 year MACRS class the project the asset which states that Asset Depreciation range Midpoint is 4 years or less The period for this project is 3 years

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b Net Present Value (Required rate Return = 9%)

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Present Value of cash flows = 723549.63

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Answer:

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Answer:

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