If a company has a profit margin of 10%, this means that:A) For every $1 of sales, the company earns $0.10 in profit.B) The company has $0.10 in expenses for every $1 of sales.C) The company’s revenue exceeds its expenses by 10%.D) The company’s assets exceed its liabilities by 10%.explain.
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If a company has a profit margin of 10%, this means that:
A) For every $1 of sales, the company earns $0.10 in profit.
B) The company has $0.10 in expenses for every $1 of sales.
C) The company’s revenue exceeds its expenses by 10%.
D) The company’s assets exceed its liabilities by 10%.
explain.
Step by step
Solved in 2 steps
- The net profit margin tells how much profit a company makes for every dollar it generates in revenue. If N is the net income (the income after taxes have been paid) and R is the total revenue, then the net profit margin M is given by M(N, R) = . A certain company pays a tax rate of 10% on its income. (a) Use I for the income before taxes, and express the net income N in terms of I. (Be careful: N is the part of I left after taxes-not the part you pay in taxes.) N = (b) Use a formula to express the net profit margin in terms of the variables I and R. M =The net profit margin tells how much profit a company makes for every dollar it generates in revenue. If N is the net income (the income after taxes have been paid) and R is the total revenue, then the net profit margin M is given by N M(N, R) R = A certain company pays a tax rate of 20% on its income. (a) Use I for the income before taxes, and express the net income N in terms of I. (Be careful: N is the part of I left after taxes-not the part you pay in taxes.) N = (b) Use a formula to express the net profit margin in terms of the variables I and R. M =The net profit margin tells how much profit a company makes for every dollar it generates in revenue. If N is the net income (income after taxes have been paid) and R is the total revenue, then the net profit margin M is M (N,R) =N/R. This company pays a tax rate of 35% on its income. A) let I represent the company’s income before taxes. Express N as a function of I. (n is the part of I left after taxes) B) express M in terms of I and R
- Can you explain the steps for solving this financial accounting question accurately?A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Will need to find EBIT first. Sales $ 1,050 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (24%) ? Net income $ ?A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Sales $ 1,200 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (20%) ? Net income $ ?
- A company has a profit margin of 10% and reports net sales of $4,000,000 and average total assets of $5,000,000. Calculate the company’s return on assets. a. 12.5%.b. 8.0%.c. 4.5%.d. 5.0%.What is the pro forma net income expected to be on these financial accounting question?What is the gross profit margin?? General accounting