At the end of 2019,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.
Calculate the net profit margin ratio.

Question

At the end of 2019,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.Calculate the net profit margin ratio.

tuong zhang zhun · Accepted Answer

Final Answer : Net profit margin = 5% = Net income ÷ Net sales = $70,000 ÷ ($1,525,000 - $125,000)= 5%.

At the end of 2019,Doran Corporation reported net income of $70,000,gross sales revenue of $1,525,000,and sales returns of $125,000.
Calculate the net profit margin ratio.

Definitions

Learning Objectives

Learning Objectives

Related questions