At the End of 2016, Doran Corporation Reported Net Income

question 3

Essay

At the end of 2016, Doran Corporation reported net income of $70,000, gross sales revenue of $1,525,000, and sales returns of $125,000.
Required:
Calculate the net profit margin ratio.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in decision making, where the likelihood of an event is estimated based on how similar it is to the typical case.

Convergent Thinking

A cognitive process in which a single, correct solution to a problem is identified through logical reasoning.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.