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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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