Financial Accounting

Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Financial Statement Analysis

Ratios: Profit Margin

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Ratios: Profit Margin

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Problem

If XYZ Company has net sales of $500,000 and net income of $25,000, the profit margin is:

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Problem

A company has income before taxes of $100,000. Net sales are $400,000 and gross profit is $300,000. What is the profit margin, assuming the company has a 40% tax rate?