Younis Corporation's income statement appears below: Income Statement Sales (all on account) S1,240

Accounting Apr 02, 2021

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

Expert Solution

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%

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