Here is some financial statement information for a business. Calculate the profit margin ratio for the current year.

Calculate your answer as a percentage to one decimal place. Do not include the '%' symbol in your answer.

Prior year Current year
Cash 207 395
Accounts receivable 149 339
Short-term investments 117 124
Inventory 320 313
Property, plant and equipment 1,169 1,079
Sales 4,000 7,128
Net profit 2,000 4,222
Share capital 3,500 3,500

Question

Here is some financial statement information for a business. Calculate the profit margin ratio for the current year.

Calculate your answer as a percentage to one decimal place. Do not include the '%' symbol in your answer.

Prior year	Current year
Cash	207	395 
Accounts receivable	149 	339 
Short-term investments	117 	124 
Inventory	320 	313 
Property, plant and equipment	1,169 	1,079 
Sales	4,000	7,128
Net profit	 2,000	4,222 
Share capital	 3,500	3,500

BlackTom AI · Accepted Answer

The task is to calculate the profit margin ratio for the current year and express it as a percentage to one decimal place, without the percent symbol.

First, identify the required values from the current year data: Net profit = 4,222 and Sales (revenue) = 7,128.

Profit margin ratio is defined as Net profit divided by Sales: Profit margin = Net profit / Sales.

Compute the division: 4,222 ÷ 7,128 ≈ 0.592 (to three decimals).

Convert to a percentage by multiplying by 100: 0.592 × 100 = 59.2%.

Since the instruction requests the answer without the '%' symbol, the numeric result to one decimal place is 59.2.

Rounding considerations: the raw ratio 0.5920 would be 59.20% if written with a percent symbol; rounding to one decimal place in the numeric form yields 59.2.

Summary of steps:
- Extract current year net profit and sales.
- Compute net profit divided by sales.
- Convert to a percentage.
- Round to one decimal place and remove the percent sign as required.

BACC011 Week 6: Practice Quiz

View Explanation

Log in for full answers

Similar Questions

A 公司的净收入为 273,165 美元，销售额为 2,399,874 美元。利润率是多少？如果答案是 10.4567%，则写 0.1046。

Company A has a net income of $273,165 and sales of $2,399,874. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Company A has a net income of $286,590 and sales of $2,527,338. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Company A has a net income of $231,917 and sales of $2,080,435. What is the profit margin? If the answer is 10.4567%, write 0.1046.

Redriver Company has a 2.5% return on average assets of $500,000 and a net profit ratio of 10%.Redrivers's sales are closest to?

4.6: If a company’s net profit margin is 10% and its revenue is $600,000, what is the net profit?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler