Rainbow Corp. has the following data for the year: • Sales revenue = $450,000 . Sales returns and allowances = $8,000 • Sales discounts = $15,000 . Cost of goods sold = $180,000 . Operating expenses = $95,000 What is the profit margin ratio for Rainbow Corp.?

Rainbow Corp. has the following data for the year: • Sales revenue = $450,000 . Sales returns and allowances = $8,000 • Sales discounts = $15,000 . Cost of goods sold = $180,000 . Operating expenses = $95,000 What is the profit margin ratio for Rainbow Corp.?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

What is the profit margin ratio for rainbow corp?

Rainbow Corp. has the following data for the year:
•
Sales revenue = $450,000
. Sales returns and allowances = $8,000
•
Sales discounts = $15,000
. Cost of goods sold = $180,000
.
Operating expenses = $95,000
What is the profit margin ratio for Rainbow Corp.?

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