Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest expense and currently pays 35% of its operating profits in taxes and P200 per year in preferred dividends, then what is Vhea's net profit margin? * 7.96% 5.92% 7.96% O 10.20%

Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest expense and currently pays 35% of its operating profits in taxes and P200 per year in preferred dividends, then what is Vhea's net profit margin? * 7.96% 5.92% 7.96% O 10.20%

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Vhea Corp has an operating
profit of P1,200 produced
from P9,800 in sales. If Vhea
has no interest expense and
currently pays 35% of its
operating profits in taxes and
P200 per year in preferred
dividends, then what is Vhea's
net profit margin? *
7.96%
O 5.92%
O 7.96%
O 10.20%

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