QUESTION 9 Use the following selected financial data to calc

QUESTION 9 Use the following selected financial data to calculate the net profit margin for RQP Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271. Net sales$800,000 Cost of goods sold 500,000 Operating expenses 100,000 Net income 120,000 Total assets 640,000 Total liabilities 462,000 37.5% 25.096 o 22.2% 15.0%

Solution

The correct answer is option D . 15.0%

Net profit margin = (net income ÷ net sales ) *100

($120000÷8,00,000)* 100= 15.0%