Petrol Corp

question 6

Essay

Petrol Corp.owns several drilling operations in the Gulf of Mexico,refineries,service stations,and tanker trucks for transporting their products.Petrol Corp.hires an environmental manager to keep the company in compliance with various environmental laws.What laws will the environmental manager need to study and why?

Recognize the terms and implications of credit sales terms like 2/10, n/30.

Identify the components of the operating cycle for a merchandiser.

Understand the impact of new revenue recognition rules on financial statements.

Understand the principles and applications of nonlinear optimization models.

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Definitions:

Profitability

The ability of a business to generate income in excess of its expenses, resulting in profit.

Net Margin

A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Sales

The activity or process of selling products or services, which involves transactions between buyers and sellers.