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Homework answers / question archive / Younis Corporation's income statement appears below: Income Statement Sales (all on account) S1,240
Younis Corporation's income statement appears below:
Income Statement Sales (all on account) S1,240.000 Cost of goods sold 780.000 Gross margin 460,000 Operating expenses 416.571 Net operating income 43,429 Interest expense 14,000 Net income before taxes 29.429 Income taxes (30%)._ 8.829 Net income S 20 600
The company's net profit margin percentage is closest to:
A. 37.1
B. 3.5
C. 2.4
D. 1.7
Answer
D .
Explanation
Computation of Company's Net Profit Margin Percentage:
Net Profit Margin Percentage = Net Income / Sales
Here,
Net Income = 20600
Sales = 1240000
Net Profit Margin Percentage = $20,600/$1,240,000 = 1.66% or 1.7%
