question archive Richard's Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000
Richard's Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000
Subject:AccountingPrice:2.87 Bought7
Richard's Sporting Goods reports net income of $100,000, net sales of $500,000, and average assets of $1,000,000. The profit margin is:
A) 20%.
B) 10%.
C) 5 times.
D) 50%.
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Answer:
profit margin=net income/sales
which is equal to
=100,000/500,000
which is equal to
= 20%(A).
