ABC Ltd. is a manufacturing company that produces and sells electronic goods. The company's financial statements for the year ended December 31, 2022, show the following information: • Net sales revenue: $10,000,000 • Cost of goods sold: $6,000,000 • Selling and administrative expenses: $2,000,000 • Income tax expense: $500,000 • Interest expense: $100,000 Net income: $1,400,000 • Total assets: $15,000,000 • Total liabilities: $5,000,000 • Shareholders' equity: $10,000,000 • Number of shares outstanding: 1,000,000 • Dividend per share: $1.50 Questions: 1. What is the company's gross profit margin for the year ended December 31, 2022? 2. What is the company's operating profit margin for the year ended December 31, 2022? 3. What is the company's net profit margin for the year ended December 31, 2022?

ABC Ltd. is a manufacturing company that produces and sells electronic goods. The company's financial statements for the year ended December 31, 2022, show the following information: • Net sales revenue: $10,000,000 • Cost of goods sold: $6,000,000 • Selling and administrative expenses: $2,000,000 • Income tax expense: $500,000 • Interest expense: $100,000 Net income: $1,400,000 • Total assets: $15,000,000 • Total liabilities: $5,000,000 • Shareholders' equity: $10,000,000 • Number of shares outstanding: 1,000,000 • Dividend per share: $1.50 Questions: 1. What is the company's gross profit margin for the year ended December 31, 2022? 2. What is the company's operating profit margin for the year ended December 31, 2022? 3. What is the company's net profit margin for the year ended December 31, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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