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

question 77

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 whole number).
• 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

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Definitions:

Renewal

The process of extending the term of an agreement, updating or refurbishing something, or restoring vitality to an idea, building, or system.

Marketing Expertise

This refers to the specialized knowledge and skills related to promoting and selling products or services, including strategies for market research, advertising, and consumer behavior.

Franchisee

A franchisee is an individual or company that holds the right to use a franchisor's business model and brand for a prescribed period of time, typically paying a royalty and initial fee for the right to do business under the franchisor's name and system.

Direct Ownership System

A system where assets are directly owned by individuals or entities, allowing for complete control and management of those assets.