<span>A portfolio with a high percentage of stocks.</span>
Net Profit Margin measures the percentage of sales revenue a firm is able to retain after all expenses are deducted from gross revenues.
What is Net Profit Margin?
A financial measure called net profit margin can be used to determine what much of a company's total revenue is profit. It gauges how much net profit a business makes for every dollar of revenue generated. The ratio of net profit to total sales, stated as a percentage, is known as the net profit margin.
Net profit is determined by subtracting all business costs from net income. A percentage is the outcome of the profit margin computation; for instance, a 10% profit margin indicates that for every $1 in revenue, the company makes $0.10 in net profit. Revenue represents the entire sales of the company in a period.
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The most expensive home the couple can afford to buy a home is $<u>175,000 </u>having a down payment of <u>20</u>%.
<h3>The computation of the total amount of expenses for home</h3>
Given,
The percentage of the down payment from the complete amount of purchase is 20%.
The total amount of saving by the couple is $35,000.
For calculating the maximum amount for buying the most expensive home the total amount of saving is assumed to be equal to the percentage of down payment.
Thus, if $35,000 is equal to 20% of the total amount then what will be the total amount?
This is computed as follows:
Therefore, the maximum amount that can be afforded by the couple to buy the most expensive home is $175,000.
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The formula for the receivables turnover ratio is net credit sales divided by average accounts receivable.
<h3>What is receivable turnover ratio?</h3>
The receivable turnover ratio is what measure the number of times over a given period that a company collects its average account.
It is the number of times per year that a business collects its average accounts receivable.
Hence, the formula for the receivables turnover ratio is net credit sales divided by average accounts receivable.
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