Canadian Bacon Inc. financial statements are presented in the table below. Based

Question

Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, calculate the firm’s net profit margin.

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

Balance Sheet December 31, 2012

Income Statement, Year of 2012

Cash and marketable securities $198,000 Accounts payable $288,000 Accounts receivable $469,000 Notes payable $65,000 Inventories $577,000 Accrued expenses $84,000 Prepaid expenses $15,700 Total current liabilities $437,000 Total current assets $1,259,700 Long-term debt $237,000 Gross fixed assets $1,954,000 Par value and paid-in-capital $199,000 Less: accumulated depreciation $476,000 Retained Earnings $1,864,700 Net fixed assets $1,478,000 Common Equity 2,063,700 Total assets $2,737,700 Total liabilities and owner’s equity $2,737,700

Explanation / Answer

Net Profit Margin is the percentage of profit over a given level of revenue earned by the firm.

Solution:

Net Profit Margin = (Net Profit / Revenue) * 100

here,

Net Profit = Net Income = $534,212.40

Revenue = Net Sales = $7,546,600.00

Net Profit Margin = ($534,212.40 / $7,546,600.00) * 100 = 7.08%.

Net Profit Margin = 7.08%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.