Answered: Plano Corporation reported net income…

Plano Corporation reported net income P24,000; net sales P400,000; and average assets P600,000 for 2012. What is the 2012 profit margin ratio?

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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Plano Corporation reported net income P24,000; net sales P400,000; and average assets P600,000 for 2012. What is the 2012 profit margin ratio?

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