Question

During the year ended December 31,2012 , Bjornstad Corporation had the following results: Sales revenue $$\$ 267,000$$; cost of good sold $$\$ 107,000$$; net income $$\$ 92,400$$; operating expenses $$\$ 55,400$$; net cash provided by operating activities $$\$ 108,950$$. What was the company's profit margin ratio? (a) $$40 \%$$. (b) $$60 \%$$. (c) $$20.5 \%$$. (d) $$34.6 \%$$.

   During the year ended December 31,2012 , Bjornstad Corporation had the following results: Sales revenue $$\$ 267,000$$; cost of good sold $$\$ 107,000$$; net income $$\$ 92,400$$; operating expenses $$\$ 55,400$$; net cash provided by operating activities $$\$ 108,950$$. What was the company's profit margin ratio?
(a) $$40 \%$$.
(b) $$60 \%$$.
(c) $$20.5 \%$$.
(d) $$34.6 \%$$.

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Accounting: Tools for Business Decision Making

Accounting: Tools for Business Decision Making

Paul D. Kimmel,… 4th Edition

Chapter 5, Problem 13

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Step 1

The profit margin ratio, also known as net profit margin, is a financial metric that shows the percentage of sales that has turned into profits. It is calculated by dividing net income by sales revenue and then multiplying by 100 to express it as a percentage. Show more…

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During the year ended December 31,2012 , Bjornstad Corporation had the following results: Sales revenue $$\$ 267,000$$; cost of good sold $$\$ 107,000$$; net income $$\$ 92,400$$; operating expenses $$\$ 55,400$$; net cash provided by operating activities $$\$ 108,950$$. What was the company's profit margin ratio? (a) $$40 \%$$. (b) $$60 \%$$. (c) $$20.5 \%$$. (d) $$34.6 \%$$.

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