In 2018,Spirit Company's Net Income Was 10% of Net Sales

question 140

True/False

In 2018,Spirit Company's net income was 10% of net sales revenue.In 2019,the net income was 5% of net sales revenue.There is no need for investors to be alarmed because a drop from 10% to 5% is not significant.

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Definitions:

Public Saving

The difference between the tax revenues and government spending of a country, representing the government's surplus or deficit.

National Saving

The total saving of an economy, consisting of both private and public saving.

Public Saving

The difference between government tax revenues and government expenditures, often used to assess a government's financial health.

Closed Economy

An economic system that does not engage in international trade with other countries and relies solely on its own resources and internal market.