Compute the Profit Margin (Rounded to Nearest Percent) for the Tim

question 85

Multiple Choice

Compute the profit margin (rounded to nearest percent) for the Tim Tom investment center as shown below. $\begin{array}{ll}&\text { Tim Tom Subsidiary }\\\text { Total sales } & \$ 1,600 \\\text { Operating income } & \$ 140 \\\text { Average assets invested } & \$ 900 \\\text { Profit margin } & ? \\\text { Asset turnover } & ? \\\text { ROI } & ?\end{array}$

• A) 7%
• B) 9%
• C) 12%
• D) 18%

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Definitions:

Beginning Balance

The amount of money in an account at the start of a new accounting period, carried over from the end of the previous period.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Minimum Legal Capital

The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.