Use the following information for questions:
Review of the financial statements revealed the following for Sonoma Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000.
-Assuming a corporate tax rate of 35%, what is the company profit margin ratio closest to?
A)12.3%
B)9.7%
C)6.4%
D)4.8%

Question

Quizplus · Accepted Answer

The Answer of Use the following information for questions:
Review of the financial statements revealed the following for Sonoma Inc.: Sales $1,250,000, Net income $37,500, Total assets $650,000, Long-term debt $750,000, Interest expense $65,000 and Cost of goods sold $775,000.
-Assuming a corporate tax rate of 35%, what is the company profit margin ratio closest to?
A)12.3%
B)9.7%
C)6.4%
D)4.8%

Use the Following Information for Questions