The 2016 Income Statement of Kellyson Enterprises Shows Operating Revenues

question 44

Essay

The 2016 income statement of Kellyson Enterprises shows operating revenues of $120,500,selling expenses of $35,200,general and administrative expenses of $29,900,interest expense of $1,500,and income tax expense of $10,520.Kellyson's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year.The company has 20,000 shares of stock outstanding at December 31,2017.
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Required
Compute Kellyson's profit margin.What other information would you need in order to comment on whether this ratio is favorable?

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