A company has net income of $148,000 and a net profit margin ratio of .087. Which of the following is not a true statement?
A) A net profit margin ratio of .087 means that 8.7 cents of profit or net income is made for each dollar of sales.
B) The amount of sales revenue for this period is $1,700,000 (rounded to the nearest whole number).
C) A higher net profit margin ratio this year than last year indicates an improvement in controlling expenses.
D) If income from operations is less than net income, this means that the company had no non-operating

Question

Quizplus · Accepted Answer

Option D is not true because income from operations is a part of net income, so if income from operations is less than net income, it means that the company had non-operating income.

A Company Has Net Income of $148,000 and a Net