A Company Has Net Income of $148,000 and a Net

question 80

Multiple Choice

A company has net income of $148,000 and a net profit margin ratio of .087. Which of the following is not a true statement?

• A)A net profit margin ratio of .087 means that 8.7 cents of profit or net income is made for each dollar of sales.
• B)The amount of sales revenue for this period is $1,700,000 (rounded to the nearest hundred thousand).
• C)A higher net profit margin ratio this year than last year indicates an improvement in controlling expenses.
• D)If income from operations is less than net income,this means that the company had no non-operating revenue.

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Definitions:

Market Leader

A company or brand that has the highest sales or market share in a particular industry or market.

Sherman Act

The Sherman Act is a foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Joint Action

A collaborative effort where two or more parties work together towards a common goal, typically in a legal or governmental context.

Section 1

A specific segment or provision within a broader legal document or statute, which would require context to fully understand its implications.