A Company Had $6,992,000 in Net Income for the Year

question 250

Multiple Choice

A company had $6,992,000 in net income for the year.Its net sales were $15,200,000 for the same period.Calculate its profit margin.

• A)85.4%.
• B)117.1%.
• C)53.9%.
• D)217.1%.
• E)46.0%.

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Definitions:

Sales Revenue

The total income received by a company from its sales of goods or services, before any expenses are subtracted.

Prepaid Expenses

Costs for goods or services that are paid for in advance of being used or consumed, recognized as assets on a balance sheet.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Accounts Receivable

Outstanding payments due to a company from its clients for delivered goods or services awaiting compensation.