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Use the following financial statement information as of the end of each year to answer this question. Inventory 2017 2016 $54,000 $48,000 81,000 106,000 Current assets Total assets Current liabilities 392,000 336,000 27,000 36,000 Total liabilities 102,000 88,000 Total stockholders equity 290,000 248,000 Preferred stock 10,000 10,000 Net sales 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. 8.4% b. 4.3% c. 11.7% d. 8.9%

Use the following financial statement information as of the end of each year to answer this question. Inventory 2017 2016 $54,000 $48,000 81,000 106,000 Current assets Total assets Current liabilities 392,000 336,000 27,000 36,000 Total liabilities 102,000 88,000 Total stockholders equity 290,000 248,000 Preferred stock 10,000 10,000 Net sales 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. 8.4% b. 4.3% c. 11.7% d. 8.9%

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.20P
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Use the following financial statement information as of the end of each year to answer this question. Inventory 2017 2016 $54,000 $48,000 81,000 106,000 Current assets Total assets Current liabilities 392,000 336,000 27,000 36,000 Total liabilities 102,000 88,000 Total stockholders equity 290,000 248,000 Preferred stock 10,000 10,000 Net sales 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. 8.4% b. 4.3% c. 11.7% d. 8.9%
Transcribed Image Text:Use the following financial statement information as of the end of each year to answer this question. Inventory 2017 2016 $54,000 $48,000 81,000 106,000 Current assets Total assets Current liabilities 392,000 336,000 27,000 36,000 Total liabilities 102,000 88,000 Total stockholders equity 290,000 248,000 Preferred stock 10,000 10,000 Net sales 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. 8.4% b. 4.3% c. 11.7% d. 8.9%
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