Exhibit 5-2
The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015:

-Refer to Exhibit 5-2. Compute net profit margin for Peace, Love, and Joy Company.
A) 14.25%
B) 15.00%
C) 25.00%
D) 13.25%

Question

Exhibit 5-2 
The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015:

-Refer to Exhibit 5-2. Compute net profit margin for Peace, Love, and Joy Company.
A) 14.25% 
B) 15.00% 
C) 25.00% 
D) 13.25%

Quizplus · Accepted Answer

The net profit margin is calculated by dividing net income by total revenue. The correct percentage based on the provided data is 14.25%.

Exhibit 5-2 The Following Is an Income Statement from the Financial Records