Wiggle Pools Has Total Equity of $358,200 and Net Income

question 37

Multiple Choice

Wiggle Pools has total equity of $358,200 and net income of $47,500.The debt-equity ratio is .68 and the total asset turnover is 1.2.What is the profit margin?

• A)4.82 percent
• B)5.23 percent
• C)5.67 percent
• D)6.58 percent
• E)7.31 percent

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Definitions:

Factory Supervisor's Salary

The compensation paid to the individual responsible for overseeing the production and personnel in a manufacturing plant.

Machine Operator's Wages

Compensation paid to employees responsible for operating machinery, considered a direct labor cost in manufacturing.

Inventory Costing

The method of assigning costs to inventory and goods sold, which affects the gross profit and cost of goods sold reported.

First-In, First-Out

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the most recent purchases in inventory.