Deal Mart The 2014 income statement of Deal Mart 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.Deal Mart'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 31,2014.
Read the information about Deal Mart.What is Deal Mart's profit margin (to the closest tenth of a percent)?

Question

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Profit margin = (Operating revenues - Operating expenses) / Operating revenues= ($130,800 - $37,100 - $34,900 - $900) / $130,800= $58,900 / $130,800= 0.449 or 44.9% (to the closest tenth of a percent)

Deal Mart the 2014 Income Statement of Deal Mart Shows