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Following Are the Financial Statements for Starman Corporation for the Year

question 85

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Following are the financial statements for Starman Corporation for the year ended December 31,20xx.Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation
Balance Sheet
December 31,20xx 31,20 x x
 Assets  Cash $20,000 Marketable securities 30,000 Accounts receivable 50,000 Inventory 100,000 Long-term receivables 35,000 Property, plant, and equipment 65,000 Total assets $300,000 Liabilities and Stockholders’ Equity  Current liabilities $100,000 Long-term liabilities 60,000 Stockholders’ equity 140,000 Total liabilities and stockholders’ equity $300,000\begin{array}{lrr}\text { Assets }\\\text { Cash } & \$ 20,000 \\\text { Marketable securities } & 30,000 \\\text { Accounts receivable } & 50,000 \\\text { Inventory } & 100,000 \\\text { Long-term receivables } & 35,000 \\\text { Property, plant, and equipment } & 65,000\\\text { Total assets }&\$300,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 100,000 \\\text { Long-term liabilities } & 60,000 \\\text { Stockholders' equity } & 140,000\\\text { Total liabilities and stockholders' equity }&\$300,000\end{array} Starman Corporation Income Statement For the Year Ended December 31,20×× Net sales $400,000 Cost of goods sold 240,000 Gross margin $160,000 Operating expenses 40,000 Income before income taxes $120,000 Income taxes expense 30,000 Net income $90,000\begin{array}{c}\text {Starman Corporation}\\\text { Income Statement }\\\text {For the Year Ended December \( 31,20 \times\times \) }\\\\\begin{array}{lr}\text { Net sales } & \$ 400,000 \\\text { Cost of goods sold } & 240,000 \\ \text { Gross margin } & \$ 160,000 \\\text { Operating expenses } & 40,000 \\\text { Income before income taxes } & \$ 120,000 \\\text { Income taxes expense } & 30,000 \\\text { Net income } & \$ 90,000\end{array}\end{array}
What is the profit margin for this corporation? Round your answer to one decimal place.


Definitions:

Strategic Plans

Long-term planning documents that articulate an organization's goals, strategies for achieving those goals, and measures for assessing progress.

Operational Plan

A detailed outline of how a strategy will be implemented in terms of resources and actions needed to achieve specific objectives.

System Capacity

The maximum output or performance level that a system can handle, which can refer to organizations, networks, or technical systems.

Nonprofit's System

A nonprofit's system comprises the organizational structures, processes, and practices that enable a nonprofit organization to pursue its mission effectively.

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