The following amounts were taken from the financial statements of Leaf Company: The profit margin ratio for 2015 is

Name: The following amounts were taken from the financial statements of Leaf Company: The profit margin ratio for 2015 is
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Question

The following amounts were taken from the financial statements of Leaf Company:  The profit margin ratio for 2015 is

Quizplus · Accepted Answer

Profit margin ratio is calculated by dividing net income by net sales. 
For 2015, the net income is $8,250 and net sales are $50,000. 
Profit margin ratio = (Net Income/Net Sales) x 100
= (8,250/50,000) x 100 
= 16.5% 
Therefore, the answer is C.

The Following Amounts Were Taken from the Financial Statements of Leaf