Use the following data to answer the questions:
Wren Corp. reported the following data on its most recent financial statements:
Net revenues:.............................$312,500
Net income................................. $\quad 58,200$
Total assets, Jan 1....................... $\quad 174,280$
Total assets, Dec $31 $..................... 168,420
-To two decimals, what is Wren Corp.'s profit margin ratio?
A) 33.97%
B) 18.62%
C) 18.24%
D) 5.37%

Question

Quizplus · Accepted Answer

The profit margin ratio is calculated by dividing net income by net revenues. 
Profit margin = net income/net revenues 
= 58,200/312,500 
= 0.1862 
= 18.62% 
Therefore, the correct answer is (B).

Use the Following Data to Answer the Questions: Wren Corp 58,200\quad 58,20058,200

Use the Following Data to Answer the Questions:
Wren Corp $\quad 58,200$