XYZ Company has net income of $1,000, revenues of $10,000, total assets of 50,000, current assets of $3,000 and current liabilities of $1500. What is their profit margin? Group of answer choices 2% 200% 2 10%

XYZ Company has net income of $1,000, revenues of $10,000, total assets of 50,000, current assets of $3,000 and current liabilities of $1500. What is their profit margin? Group of answer choices 2% 200% 2 10%

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

XYZ Company has net income of $1,000, revenues of $10,000, total assets of 50,000, current assets of $3,000 and current liabilities of $1500. What is their profit margin?

Group of answer choices

200%

10%

Expert Solution

Step 1

Profit margin measures the net income generated from the revenues of the company for a period of time.

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