During 2022, Granville Industries reported the following: • Net Sales: $25,000,000 • Net Income: $1,250,000 . Depreciation Expense: $500,000 Beginning Total Assets: $10,000,000 • • Ending Total Assets: $18,000,000 . Property, Plant, and Equipment: $7,500,000 Accumulated Depreciation: $1,800,000 What is Granville Industries' profit margin? a. 5.0% b. 4.2% c. 6.3% d. 7.5%

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 29CE
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What is the profit margin for this general accounting question?

During 2022, Granville Industries reported the following:
•
Net Sales: $25,000,000
•
Net Income: $1,250,000
.
Depreciation Expense: $500,000
Beginning Total Assets: $10,000,000
•
•
Ending Total Assets: $18,000,000
.
Property, Plant, and Equipment: $7,500,000
Accumulated Depreciation: $1,800,000
What is Granville Industries' profit margin?
a. 5.0%
b. 4.2%
c. 6.3%
d. 7.5%
Transcribed Image Text:During 2022, Granville Industries reported the following: • Net Sales: $25,000,000 • Net Income: $1,250,000 . Depreciation Expense: $500,000 Beginning Total Assets: $10,000,000 • • Ending Total Assets: $18,000,000 . Property, Plant, and Equipment: $7,500,000 Accumulated Depreciation: $1,800,000 What is Granville Industries' profit margin? a. 5.0% b. 4.2% c. 6.3% d. 7.5%
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