The Clydesdale Company Has Sales of $4,500,000

question 59

Multiple Choice

The Clydesdale Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%. What is Clydesdale Company's profit margin?

• A) 20%
• B) 80%
• C) 44.4%
• D) 18%

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Definitions:

Auditor Independence

A foundational principle that auditors must be unbiased and impartial with respect to the financial statements and other information they audit.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a U.S. law enacted to protect investors from fraudulent accounting activities by corporations.