Ned's Net Income Was $780,000; Its Net Assets Were $5,200,000;

question 201

Essay

Ned's net income was $780,000; its net assets were $5,200,000; and its net sales were $9,000,000. Calculate its profit margin ratio.

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Definitions:

Minimum Wage

The lowest legal hourly pay that workers can be paid by employers, set by government legislation.

Unemployment

The situation in which individuals who are capable of working and willing to work cannot find employment.

Black Market

An illegal traffic or trade in officially controlled or scarce commodities, bypassing governmental regulation or taxation.

Binding Price Floor

A government-imposed price control that sets the minimum price above the equilibrium price, causing a surplus in the market.