Options I have for denominator are -average accounts receivable, netaverage total assetscost of goods soldcurrent assetscurrent liabilities interest expensenet sales Required information[The following information applies to the questions displayed below.)The adjusted trial balance for Chlara Company as of December 31 follows.DebitCredit$ 139,30050,50022,000172,00017,000173,000CashAccounts receivableInterest receivableNotes receivable (due in 9e days)Office suppliesAutomobiles$ 100,000Accumulated depreciation-AutomobilesEquipmentAccumulated depreciation-EquipmentLand138,00022,00083,000Accounts payableInterest payableSalaries payable105,0005e,00e25,00e34,00e148,880Unearned feesLong-term notes payableR. Chiara, CapitalR. Chiara, Withdrawals285, Bee50,808Fees earned474,80e32,000Interest earnedDepreciation expense-AutomobilesDepreciation expense-EquipmentSalaries expenseWages expenseInterest expenseOffice supplies expenseAdvertising expenseRepairs expense-Automobiles25,50019,000198,00040,00032,00033,80063,50027,200$1,275,800Totals$1,275,8002 Calculate the profit margin for the year.Profit MarginChoose Numerator:/Profit MarginProfit marginChoose Denominator:

The profit margin ratio can be calculated by dividing profit by net sales. It indicates the…

Answered: Options I have for denominator are -…

Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales

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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Question

Options I have for denominator are -

average accounts receivable, net

average total assets

cost of goods sold

current assets

current liabilities interest expense

net sales

Required information
[The following information applies to the questions displayed below.)
The adjusted trial balance for Chlara Company as of December 31 follows.
Debit
Credit
$ 139,300
50,500
22,000
172,000
17,000
173,000
Cash
Accounts receivable
Interest receivable
Notes receivable (due in 9e days)
Office supplies
Automobiles
$ 100,000
Accumulated depreciation-Automobiles
Equipment
Accumulated depreciation-Equipment
Land
138,000
22,000
83,000
Accounts payable
Interest payable
Salaries payable
105,000
5e,00e
25,00e
34,00e
148,880
Unearned fees
Long-term notes payable
R. Chiara, Capital
R. Chiara, Withdrawals
285, Bee
50,808
Fees earned
474,80e
32,000
Interest earned
Depreciation expense-Automobiles
Depreciation expense-Equipment
Salaries expense
Wages expense
Interest expense
Office supplies expense
Advertising expense
Repairs expense-Automobiles
25,500
19,000
198,000
40,000
32,000
33,800
63,500
27,200
$1,275,800
Totals
$1,275,800
2 Calculate the profit margin for the year.
Profit Margin
Choose Numerator:/
Profit Margin
Profit margin
Choose Denominator:

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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