Assets Cash and short-term investments Accounts receivable (net) Inventory Prope
ID: 2338916 • Letter: A
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