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Use the following financial statement information as of the end of each year: Inventory Current assets Total assets Current liabilities Total liabilities 2017 ($) 2016 ($) 54,000 48,000 81,000 106,000 392,000 336,000 27,000 36,000 102,000 88,000 Preferred stock Net sales Total stockholders' equity 290,000 248,000 10,000 10,000 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 34,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 2,000 2,000 Dividends paid to common shareholders 1,000 Compute the profit margin for 2017. 1,000 a. 8.9%. b. 4.3%. c. 8.4%. d. 11.7%.

Use the following financial statement information as of the end of each year: Inventory Current assets Total assets Current liabilities Total liabilities 2017 ($) 2016 ($) 54,000 48,000 81,000 106,000 392,000 336,000 27,000 36,000 102,000 88,000 Preferred stock Net sales Total stockholders' equity 290,000 248,000 10,000 10,000 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 34,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 2,000 2,000 Dividends paid to common shareholders 1,000 Compute the profit margin for 2017. 1,000 a. 8.9%. b. 4.3%. c. 8.4%. d. 11.7%.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 54CE
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Use the following financial statement information as of the end of each year: Inventory Current assets Total assets Current liabilities Total liabilities 2017 ($) 2016 ($) 54,000 48,000 81,000 106,000 392,000 336,000 27,000 36,000 102,000 88,000 Preferred stock Net sales Total stockholders' equity 290,000 248,000 10,000 10,000 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 34,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 2,000 2,000 Dividends paid to common shareholders 1,000 Compute the profit margin for 2017. 1,000 a. 8.9%. b. 4.3%. c. 8.4%. d. 11.7%.
Transcribed Image Text:Use the following financial statement information as of the end of each year: Inventory Current assets Total assets Current liabilities Total liabilities 2017 ($) 2016 ($) 54,000 48,000 81,000 106,000 392,000 336,000 27,000 36,000 102,000 88,000 Preferred stock Net sales Total stockholders' equity 290,000 248,000 10,000 10,000 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 34,000 90,000 Tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preferred stockholders 2,000 2,000 Dividends paid to common shareholders 1,000 Compute the profit margin for 2017. 1,000 a. 8.9%. b. 4.3%. c. 8.4%. d. 11.7%.
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