Marino Company Has Provided the Following Information

question 96

Multiple Choice

Marino Company has provided the following information:
Net sales,$480,000
Net income,$24,000
Average total assets,$200,000
What is Marino's net profit margin ratio?

• A)75%
• B)12%
• C)42%
• D)5%

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Definitions:

Speculative Demand

Demand for an asset not for its intrinsic value or use, but for the expectation of selling it at a higher price in the future to make a profit.

Created Money

Money that has been generated through the banking system's lending processes, beyond the base money originally introduced into the economy.

Liquidity Trap

A situation where interest rates are low and savings rates are high, rendering monetary policy ineffective in stimulating economic growth.

John Maynard Keynes

A British economist whose theories on the causes of prolonged unemployment fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.