
Concept explainers
Concept Introduction:
Assets: These are resources which the company owns and will generate future economic benefits. The assets are categorized into fixed asset which will help in generating revenues for long period of time and examples is plant and machinery, building , equipments etc and current assets are resources which will be converted into cash within one year examples are
It always shown in percentage
Profit Margin Ratio: This ratio determines the percentage of operating profit on net sales and the formula to calculate it is given below
It always shown in percentage
To Prepare:
Calculate profit margin ratio for the year 2017 for Thompson Toy Company

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Chapter 24 Solutions
Horngren's Accounting
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