The ratio equationThe calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook.Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.The original post should include at least three (3) sentences but no more than seven (7) sentences. Damita Company reported net income of $48,025 and net sales of $425,000 for the current year. Calculatethe company's profit margin and interpret the result. Assume that its competitors earn an average profitmargin of 15%.

Formula: Net income / Net sales = Profit margin

Answered: Damita Company repor he company's…

Business

Accounting

Damita Company repor he company's profit m nargin of 15%.

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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Question

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The ratio equation
The calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook.
Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
Then explain whether this is a good result or a result that needs improving.
The original post should include at least three (3) sentences but no more than seven (7) sentences.

Damita Company reported net income of $48,025 and net sales of $425,000 for the current year. Calculate
the company's profit margin and interpret the result. Assume that its competitors earn an average profit
margin of 15%.

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