From the Information Provided,calculate Giuseppe's Profit Margin Ratio for Each

question 51

Essay

From the information provided,calculate Giuseppe's profit margin ratio for each of the three years.Comment on the results,assuming that the industry average for the profit margin ratio is 6% for each of the three years.

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Definitions:

Note Receivable

A written promise to pay a specified amount of money, with interest, by a certain date.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Interest Payment

The amount paid by a borrower to a lender as a charge for borrowing money, usually expressed as an annual percentage of the principal amount.

Note Settlement

The process of satisfying the obligations of a promissory note, typically involving the repayment of the principal and accrued interest.