Based on the Selected Financial Information Shown Below, Calculate the Profit

question 96

Short Answer

Based on the selected financial information shown below, calculate the profit margin for year 2. Round to two decimal places.
Year 1 Year 2
Total assets $1,200,000 $1,300,000
Total shareholders' equity $760,000 $800,000
Sales $5,000,000 $5,500,000
Net Income $200,000 $225,000

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Definitions:

Stock Dividends

A dividend payment made to shareholders in the form of additional shares rather than cash.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, used for reinvestment in the business or paying off debt.