The financial statements of Bames Company include the following data: Cost of Co

Question

The financial statements of Bames Company include the following data: Cost of Coods Seld Operating Eapenes Net Cash Provided frm Opernting Activities Net Income 230,000 92,000 69,000 65,000 69,000 14,000 0.35 Earning per Share Balance Sheet December 31 1.201, 12.2012 $172,90 112,100 37,100 83.200 232.400 130,000 Accoun Receivable, 31,200 102,500 306,500 122,000 Total Cureet Assets Plat Assets, net Total Assets $428,600 362.400 Liabdities and Stockbelders' Equity 36,60039,400 101,400 70,000 261,000 60,000 96,600 10% Bonds Payable 96 600 207,000 191,000 125,000 or Shockholders Equity Total Liabhlities and Stociheliders Bquty 428600 $428,600 362.400 Total Liabilities and Stackholders Equity Required Compute the profit margin ratio for 2016. Round your answer to the nearest percentage. (If necessary , consult a ist of formulas) Profit margin ratio Clear Undo Help Type here to search 0

Explanation / Answer

STEP 1: FORMULA Profit Margin Ratio = Net Income / Net Sales STEP 2: CALCULATION OF THE RATIO Profit Margin Ratio for 2016= Net Income = $                     69,000 Divide By "/" By Net Sales = $                 2,30,000 Profit Margin Ratio for 2016= 30% STEP 3: ANSWER Profit margin Ratio = 30%

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