The following table shows someselected financial information of ABCCompany. According to the giveninformation, which of the followingshows the Net Profit Margincorrectly?Sales54000Net Profit20000Sales Returns and4000discountsCash4200Current Liabilities13000Select one:a. None of the optionsb. 0.40c. 0.37d. 2.5

Net profit margin ratio shows the ratio of net income to the net sales during the year. Net profit…

Answered: The following table shows some selected…

The following table shows some selected financial information of ABC Company. According to the given information, which of the following shows the Net Profit Margin correctly?

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

The following table shows some
selected financial information of ABC
Company. According to the given
information, which of the following
shows the Net Profit Margin
correctly?
Sales
54000
Net Profit
20000
Sales Returns and
4000
discounts
Cash
4200
Current Liabilities
13000
Select one:
a. None of the options
b. 0.40
c. 0.37
d. 2.5

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