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

question 144

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.
$\begin{array}{lrccc}&\underline{2017}&\underline{2016}&\underline{2015}\\\text { Net income } & \$ 2,630 & \$ 2,100 & \$ 1,850 \\\text { Net Sales } & 36,500 & 32,850 & 31,200 \\\text { Total Assets } & 400,000 & 385,000 & 350,000\end{array}$

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and the owner in terms of legal and financial affairs.

Advantages

The positive aspects or benefits that contribute to achieving success or gaining a competitive edge.

Disadvantages

Disadvantages refer to the negative aspects or conditions that reduce effectiveness, efficiency, or desirability of something or someone.

Expressed Agreement

A contract in which the terms are stated clearly and explicitly, typically in written or spoken form.