The Following Selected Data Come from Celebration Company's Income Statements

question 8

Multiple Choice

 The following selected data come from Celebration Company's income statements over three recent years. Based on the data, what is Celebration's profit margin for each of the three years, and do the ratios show deterioration or improvement in Celebration's profitability? Assume the industry average is 0.065 or 6.5%. 

• A) 0.039; 0.027; 0.023; weak but improving
• B) 0.39; 0.40; 0.41; weak but improving slightly
• C) 0.038; 0.026; 0.022; weak but improving
• D) 0.35; 0.34; 0.32; weak and deteriorating slightly

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