The Following Information Is Available for the Wooden Company From the Information Provided,calculate Wooden's Profit Margin Ratio for Each

question 4

Essay

The following information is available for the Wooden Company:
$$\begin{array} { | l | r | r | r | } \hline & 2010 & 2009 & { 2008 } \\\hline \text { Net income } & 2 , 6 3 0 & 2 , 1 0 0 & 1 , 8 5 0 \\\hline \text { Net Sales } & 3 6 , 5 0 0 &3 2 , 8 5 0 & 3 1 , 2 0 0 \\\hline \text { Total assets } & 400,000 & 3 8 5 , 0 0 0&3 5 0 , 0 0 0 \\\hline\end{array}$$
From the information provided,calculate Wooden'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.

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Definitions:

Insurance Payment

The amount paid to an insurer or healthcare provider to cover the cost of an insured individual's medical services or treatment.

Remittance Advice Form

A document sent by a payer to a payee, outlining the details of a payment transaction, often used in medical billing.

Bartered Goods

Items that are traded or exchanged for other goods or services without the use of money.

Manual Insurance Log

A traditional, paper-based record keeping system for tracking insurance claims and coverage information.