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The following information is available to you for the Wooden Company:                           2011                2010 Net Income.    53,394            39,510 Net Sales         233,715           182,795 From the information provided, calculate Wooden’s profit margin ratio for each year.  Be sure to show your calculations.  2011     2010     Comment on the results, assuming that the industry average for the profit margin ratio is 25% for each of the two years.

The following information is available to you for the Wooden Company:                           2011                2010 Net Income.    53,394            39,510 Net Sales         233,715           182,795 From the information provided, calculate Wooden’s profit margin ratio for each year.  Be sure to show your calculations.  2011     2010     Comment on the results, assuming that the industry average for the profit margin ratio is 25% for each of the two years.

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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The following information is available to you for the Wooden Company:

                          2011                2010

Net Income.    53,394            39,510

Net Sales         233,715           182,795

From the information provided, calculate Wooden’s profit margin ratio for each year.  Be sure to show your calculations. 

2011

 

 

2010

 

 

Comment on the results, assuming that the industry average for the profit margin ratio is 25% for each of the two years.

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