C | ezto.mheducation.com/hm.tpx The following transactions are February activiti

Question

C | ezto.mheducation.com/hm.tpx The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States a Swing Hard collected $17,.200 from customers for lesson services provided in February b. Swing Hard sold a gift card for golf lessons for $110 cash in February c. Swing Hard received $6,600 from credit sales made to customers in January d Swing Hard collected $3,500 in advance payments for golf lessons to start in June e Swing Hard billed a customer $140 for services provided between February 25 and February 28. The bill is to be paid in March f Swing Hard paid $5,450 for wages to its golf instructors for the month of February g. Swing Hard paid S2,450 for electricity used in the month of January h. Swing Hard received an electricity bill for $1,200 for the month of February, to be paid in March 1. Prepare an income statement for Swing Hard Incorporated for the month ended February 28. (This income statement would be considered preliminary" because it uses unadjusted balances) SWING HARD INCORPORATED Income Statement 2. What is the company's net profit margin, expressed as a percent? (Round your answer to 1 decimal place.) t Profit Margin Type here to search

Explanation / Answer

2)Net ptofit margin = Net income /Total revenue

               = 10800/17450

               = .6189 or 61.9%

Income statement Revenue Lesson service revenue [17200+140] 17340 sales revenue [110] 110 Total revenue 17450 less:expense Wages 5450 electricity 1200 Total expense (6650) Ne Income 10800

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