If Income from Operations for a Division Is $5,000, Invested

question 107

True/False

If income from operations for a division is $5,000, invested assets are $25,000, and sales are $30,000, the profit margin is 20%.

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Definitions:

Net Operating Working Capital

Net operating working capital is a financial measure that represents the difference between operating current assets and operating current liabilities.

Tax Liability

The total amount of tax that an individual or a corporate entity owes to a tax authority.

Capital Gains

Capital gains are the profit earned from the sale of an asset, such as stocks, bonds, or real estate, which exceeds the purchase price.

Tax Tables

Charts or tables provided by tax authorities that show the amount of tax payable based on income earned, used to calculate tax liabilities.