Profit Margin = Net Income/Net Sales
Profit Margin = $6,125/$17,500 = 0.35= <u>35%</u>
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The profitability of your company can be gauged by looking at your profit margin. How much of each dollar of sales or services is retained as profit is stated as a percentage of those profits. In business, the profit margin is calculated by dividing the net income by the net sales or revenue. To calculate net income, or net profit, a business simply deducts operating costs from sales.
The difference between gross and net profit margins
While a high gross profit margin and solid operational profit margin are great signs, a low net profit margin indicates wasteful spending on non-core business functions. It's a sign that your running costs are higher than the price you're charging for your products or services if the operational profit margin is negative.
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Answer:
Interest Revenue for $37.50
Explanation:
The interest that has accrued on the note receivable from December 16 till December 31(for 15 days) needs to be recognized at the end of the year since the interest for those days has been earned.
Based on 30-day month counting, the interest that would be credited to interest revenue and debited to interest receivable on 31 December is computed thus:
interest receivable=$15000*6%*15/360
interest receivable=$37.50
Answer:<u><em> $14 million is the amount that should be reported as the net investment in capital assets in the government-wide statement of net position.</em></u>
<u><em>Inventory is not a capital asset also the liability in regards to acquisition of inventory is left out. In this case capital assets are in regards with the roads and equipment. </em></u>