MyBnB started a home rental company on January 1. As of November 30, MyBnB reported the following balances. The company does not yet have a balance in Retained Earnings because this is its first year of operations so no net income has been reported in prior years. Accounts Payable$ 750Equipment$ 6,000Cash2,500Repairs Expense500Cleaning Expense2,250Service Revenue5,000Common Stock7,500Wages Expense2,000Based on the financial statements prepared in requirement 5, determine whether the owner met her 10 percent net profit margin goal as of December 31. (Round your answer to 1 decimal place.)

The ratio of a company's profit to its overall revenue (net sales) is known as net profit margin.…

Answered: MyBnB started a home rental company on…

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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MyBnB started a home rental company on January 1. As of November 30, MyBnB reported the following balances. The company does not yet have a balance in Retained Earnings because this is its first year of operations so no net income has been reported in prior years.

Accounts Payable	$ 750	Equipment	$ 6,000
Cash	2,500	Repairs Expense	500
Cleaning Expense	2,250	Service Revenue	5,000
Common Stock	7,500	Wages Expense	2,000

Based on the financial statements prepared in requirement 5, determine whether the owner met her 10 percent net profit margin goal as of December 31. (Round your answer to 1 decimal place.)

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