Big K Grocer's financial statements show net income of $700 million, sales of $76,733 million, and average total assets of $23,175 million.
How much is Big K Grocer's profit margin for the year?
A) 4.71%
B) 0.91%
C) 30.20%
D) 6.42%
E) There is not enough information to calculate the ratio.

Question

Quizplus · Accepted Answer

Profit margin is calculated as (Net Income / Sales) * 100. For Big K Grocer, it is ($700 million / $76,733 million) * 100 = 0.91%.

Big K Grocer's Financial Statements Show Net Income of $700