Asked by Jeancarlos Chavarro on May 07, 2024
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At the end of 2019,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.
Calculate the net profit margin ratio.
Net Profit Margin Ratio
A profitability ratio calculated by dividing net income by net sales, showing how much profit a company makes for every dollar of its sales.
Gross Sales Revenue
the total amount of sales generated by a business before any deductions are made.
Sales Returns
Sales Returns represent the goods returned by customers to the seller, which leads to a reversal of sales revenue.
- Interpret the financial performance of companies through ratio analysis, including profitability, liquidity, and solvency ratios.
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Learning Objectives
- Interpret the financial performance of companies through ratio analysis, including profitability, liquidity, and solvency ratios.
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