Assets Cash and short-term investments Accounts receivable (net) Inventory Prope

Question

Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment s 40,000 30,000 25,000 Total Assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders equity-common $ 60,000 75,000 Total Liabilities and Stockholders' Equity 310,00 Income Statement Sales Cost of goods sold Gross profit Operating expenses s 135,000 45,000 90,000 Net income Number of shares of common stock Market price of common stock Dividends per share 5,000 $22 1.00 What is the profit margin for Eura? 27.8% O 51.9% 72.2% 48.1%

Explanation / Answer

Calculation of Profit margin

Profit margin = net income /sale*100

here sale =135000

net income = 65000

Profit margin = 65000/135000*100

Profit Margin = 48.1%

therefore option "D" is CORRECT

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