On December 31, 2015, Peligrino Co. has a long term note payable of $800,000. Of that balance, $100,000 will be paid within one
1 answer:
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Answer:
profit margin is 16.0 %
gross profit rate is 39.6 %
Explanation:
given data
net sales = $248,700
cost of goods sold = $146,900
operating expenses = $58,000
net income = $39,900
beginning total assets = $473,900
ending total assets of $635,400
to find out
profit margin and gross profit rate
solution
we will apply here profit margin formula that is
profit margin = ..............1
put here value
profit margin =
profit margin = 16.04 = 16.0 %
and
gross profit rate formula is
gross profit rate = ..............2
put here value
gross profit rate =
gross profit rate is 39.72 = 39.6 %