Use the following information for questions.
The following data are provided:

Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-The profit margin on sales for 2011 is

Question

Use the following information for questions.
The following data are provided:
  
Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-The profit margin on sales for 2011 is

Quizplus · Accepted Answer

To calculate profit margin on sales, we need to divide the net income by the total revenue.
Net income = Gross profit - Operating expenses - Depreciation
From the given data, we only have the depreciation included in the cost of goods sold and operating expenses, which is $305,000. We don't have any information on the operating expenses, so we cannot calculate the net income. However, we can calculate the gross profit margin on sales, which is given by:
Gross profit margin = Gross profit / Total revenue
To calculate the gross profit, we need to subtract the cost of goods sold from the total revenue. We don't have the information on the cost of goods sold, but we can use the following formula to calculate it:
Cost of goods sold = Total operating expenses + Depreciation - Gross profit
We know that the depreciation included in the cost of goods sold and operating expenses is $305,000. Therefore,
Cost of goods sold = Total operating expenses + $305,000 - Gross profit
We don't have any information on the total operating expenses or the gross profit, so we cannot calculate the cost of goods sold or the gross profit margin. Therefore, we cannot calculate the net income or the profit margin on sales. However, we can calculate the gross profit margin on sales, which is given by:
Gross profit margin = Gross profit / Total revenue
Since we don't have information on gross profit or total revenue, we cannot calculate the gross profit margin.

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