Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): Accounts receivable (net) $20 2021 2020 $31 Net sales $130 $115 Cost of goods sold $75 $70 Net income $20 $32 Inventory turnover 5.95 Return on assets 12.00% Equity multiplier 2.51 Dowling's 2021 profit margin is: A. 31.1%. B. 15.3%. C. 14.2%. D. 15.4%.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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Excerpts from Dowling Company's December 31, 2021 and
2020, financial statements and key ratios are presented below
(all numbers are in millions):
Accounts receivable (net) $20
2021
2020
$31
Net sales
$130
$115
Cost of goods sold
$75
$70
Net income
$20
$32
Inventory turnover
5.95
Return on assets
12.00%
Equity multiplier
2.51
Dowling's 2021 profit margin is:
A. 31.1%.
B. 15.3%.
C. 14.2%.
D. 15.4%.
Transcribed Image Text:Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): Accounts receivable (net) $20 2021 2020 $31 Net sales $130 $115 Cost of goods sold $75 $70 Net income $20 $32 Inventory turnover 5.95 Return on assets 12.00% Equity multiplier 2.51 Dowling's 2021 profit margin is: A. 31.1%. B. 15.3%. C. 14.2%. D. 15.4%.
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