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

question 87

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:

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses from total revenue.

Balance Sheet

This details a business's financial condition by listing its assets, debts, and the equity of its shareholders on a specific date.

Economic Resources

Assets, natural resources, labor, and capital that can be used for the production of goods and services, fundamental to economic activity.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.