-Calculate C Co's Profit Margin Ratio for 20X2 and 20X1

question 136

Multiple Choice

-Calculate C Co's profit margin ratio for 20X2 and 20X1 respectively.

• A) 69.7% and 70.4%
• B) 19.3% and 27.6%
• C) 20.1% and 26.4%
• D) 12.3% and 18.8%

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to external parties at a given time.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expenses.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net profit or loss.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.