Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years, respectively. Net sales were $115,000 for the current year and $152,000 the prior year. The industry reported a net profit ratio of 83.44% last year and 23.76% this year. a) Calculate Akerley's net profit ratio for the current year to two decimal places. b) Calculate Akerley's net profit ratio for the previous year to two decimal places. c) Is the change in Akerley's net profit ratio favorable or unfavorable?

Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years, respectively. Net sales were $115,000 for the current year and $152,000 the prior year. The industry reported a net profit ratio of 83.44% last year and 23.76% this year. a) Calculate Akerley's net profit ratio for the current year to two decimal places. b) Calculate Akerley's net profit ratio for the previous year to two decimal places. c) Is the change in Akerley's net profit ratio favorable or unfavorable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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