Ratios
Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story? How could liquidity ratios be used by investors to determine whether or not to invest in a company?
and
|
Profit Margin
|
| Year Ending December 2012 | Year Ending December 2011 | Year Ending December 2010 | |
| Revenues | 40,000 | 35,000 | 33,000 |
| Operating Expenses | |||
| Salaries | 15,000 | 10,000 | 9,000 |
| Maintenance and Repairs | 6,000 | 9,000 | 10,000 |
| Rental Expense | 2,500 | 2,500 | 2,500 |
| Depreciation | 2,000 | 2,000 | 2,000 |
| Fuel | 4,000 | 3,500 | 2,500 |
| Total Operating Expenses | 29,500 | 27,000 | 26,000 |
| Operating Income | 10,500 | 8,000 | 7,000 |
| Sales and Administrative Expenses | 6,000 | 4,000 | 3,000 |
| Interest Expense | 2,500 | 2,000 | 1,000 |
| Net Income | 2,000 | 2,000 | 3,000 |
Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the net-profit margin for each of these years. Comment on the profit margin trend.
Needs help with similar assignment?
We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper
Get Answer Over WhatsApp
Order Paper Now
