Harrison Bank has the following financial information. $\begin{array} { | c | r | }
\hline \text { Net Profit Margin } & 12.5 \% \
\hline \text { Net Income } & \$ 1000 \
\hline \text { Total Assets } & \$ 62,500 \
\hline \text { Total Equity } & \$ 6250 \
\hline
\end{array}$
What is the bank's total operating revenue?
A)$125
B)$8,000
C)$488,281
D)$31,250,000
E)None of the options is correct

Question

Harrison Bank has the following financial information. $\begin{array} { | c | r | } 
\hline \text { Net Profit Margin } & 12.5 \% \
\hline \text { Net Income } & \$ 1000 \
\hline \text { Total Assets } & \$ 62,500 \
\hline \text { Total Equity } & \$ 6250 \
\hline
\end{array}$
What is the bank's total operating revenue?
A)$125
B)$8,000
C)$488,281
D)$31,250,000
E)None of the options is correct

Quizplus · Accepted Answer

The net profit margin is calculated as (Net Income / Total Operating Revenue) * 100. Rearranging gives Total Operating Revenue = Net Income / (Net Profit Margin / 100) = $1000 / 0.125 = $8,000.

Harrison Bank Has the Following Financial Information What Is the Bank's Total Operating Revenue? A)$125 B)$8,000 C)$488,281

Harrison Bank Has the Following Financial Information What Is the Bank's Total Operating Revenue?
A)$125
B)$8,000
C)$488,281