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Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%

Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%

FINANCIAL ACCOUNTING
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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What is keys' profit margin?

Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%
Transcribed Image Text:Keys Industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisting of $200 of accruals and $50 of notes payable. Its long-term debt is $850, its common equity is $1,000, its interest charges are $125, and its tax rate is 40%. What is Keys' profit margin? a. 2.92% b. 2.62% c. 3.56% d. 3.24% e. 2.36%
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