Seikoson
The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson’s stockholders’ equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2017.

-Read the information about Seikoson.What is Seikoson's profit margin (to the closest tenth of a percent)?

Question

Seikoson
The 2017 income statement of Seikoson shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Seikoson’s stockholders’ equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2017.

-Read the information about Seikoson.What is Seikoson's profit margin (to the closest tenth of a percent)?

Quizplus · Accepted Answer

To find Seikoson's profit margin, we need to use the formula:
Profit Margin = (Net Income / Revenue) x 100
From the table, we can see that Seikoson's Net Income is 35,540 and Revenue is 100,000. Plugging these values into the formula, we get:
Profit Margin = (35,540 / 100,000) x 100
Profit Margin = 35.54%
Rounded to the closest tenth of a percent, Seikoson's profit margin is 35.5%. Therefore, the correct answer is choice B.

Seikoson the 2017 Income Statement of Seikoson Shows Operating Revenues of of $130,800