If Net Income for the year was $ 60,000 and Sales were $ 480,000, what is...

Question

Question

If Net Income for the year was $ 60,000 and Sales were $ 480,000, what is the profit margin? For each $1 of sales, how much profit was generated?

business accounting

Answer 1

Answer #1

If it is helpful, please rate the answer and if any doubt arises let me know

Profit Margin	=	12.5%
Profit generated for each $1 sales	=	$ 0.125

Workings:
Net Income	=	$ 60,000
Sales	=	$ 4,80,000

Profit Margin	=	Net Income / Sales
	=	$60000 / $480000
	=	12.5%

Profit generated for each $1 sales	=	$1 X 12.5%
	=	$ 0.125

Answer 2

Similar Homework Help Questions

Jalon Corp's last year's sales were $2,000,000 and generated a net income of $200,000. It had...

Jalon Corp's last year's sales were $2,000,000 and generated a net income of $200,000. It had current assets of $520,000 and fixed assets of $480,000. Its long term debt was 300,000 and current liabilities consisted of $58,000 in accounts avable and $42,000 in accruals. Next year sales are expected to have a growth rate of 30%. Jalon pays out 30% of its earning in the form of dividends. Assuming the above relationships do not change, how much in Additional Funds...
0 A company had $6,980,000 in net income for the year. Its net sales were $15,000,000...

0 A company had $6,980,000 in net income for the year. Its net sales were $15,000,000 for the same period. Calculate its profit margin Multiple Choice 23.3% o 930 114.99 ME < Prev 20 of 30 Next > Nast 7:15 PM pa narh
Edison Co. reported the following for the current year: Net sales Cost of goods sold Net...

Edison Co. reported the following for the current year: Net sales Cost of goods sold Net income Beginning balance of total assets Ending balance of total assets $84,000 $60,000 $20,160 $60,000 $74,400 Compute (a) profit margin and (b) return on total assets. Complete this question by entering your answers in the tabs below. Profit Margin Ratio Return On Total Assets Compute the profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio %...

The 2021 income statement for Anderson TV and Appliance reported net sales of $250,000 and net...

The 2021 income statement for Anderson TV and Appliance reported net sales of $250,000 and net income of $90,000. Average total assets for 2021 was $400,000. Shareholders' equity at the beginning of the year was $300,000 and $30,000 was paid to shareholders as dividends. There were no other shareholders' equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on equity for 2021. Profit Margin (%) Choose Numerator: 1 Choose Denominator: Profit...
At the end of the year, ABC Company's net assets were $60,000. Net income calculated by...

At the end of the year, ABC Company's net assets were $60,000. Net income calculated by using the capital maintenance concept was $20,000. During the year, additional common stock was issued for $14,000, and $8,000 of dividends were paid. The net assets at the beginning of the year were a.$31,000. b.$20,000. c.$34,000. d.$25,000. Which of the following statements regarding the capital maintenance concept is not true? a.The capital maintenance concept implies net income for the period is the amount of...
36. River Corp's total assets at the end of last year were $480,000 and its net...

36. River Corp's total assets at the end of last year were $480,000 and its net income was $32,750. What was its return on total assets? a. 6.28% b. 5.73% c. 6.82% d. 6.48% e. 7.71%

36. River Corp's total assets at the end of last year were $480,000 and its net...

36. River Corp's total assets at the end of last year were $480,000 and its net income was $32,750. What was its return on total assets? a. 6.28% b. 5.73% c. 6.82% d. 6.48% e. 7.71%
During the latest year, XYZ Corporation has total sales of $400,000, net income of 20,000, and...

During the latest year, XYZ Corporation has total sales of $400,000, net income of 20,000, and its year-end total assets were $450,000. The firm’s total debt to total assets ratio was 40%. What is firm's profit margin as a percentage?
The 2021 income statement for Anderson TV and Appliance reported net sales of $360,000 and net...

The 2021 income statement for Anderson TV and Appliance reported net sales of $360,000 and net income of $85,000. Average total assets for 2021 was $800,000. Shareholders’ equity at the beginning of the year was $500,000 and $40,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year. Show the DuPont framework's calculation of the three components of the 2021 return on equity for Anderson TV and Appliance. Profit Margin (%) Choose...

Assume a company's Income Statement for Year 12 is as follows: Income Statement Data Net Revenues...

Assume a company's Income Statement for Year 12 is as follows: Income Statement Data Net Revenues from Footwear Sales Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) Yea. 12 (in 000s) $ 580,000 350,000 45,000 90,000 15,000 80,000 (20,000) 60,000 18,000 $ 42,000 Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding, the company's...