A company has:
Sales of 27million
Total assets of 19 million
Total debt of 6,400,000
Profit margin 8%
What is the net income?
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A company has:
Sales of 27million
Total assets of 19 million
Total debt of 6,400,000
Profit margin 8%
What is the net income?
There are several of ways to calculate NI depending on the information available.
- Sales – Total costs
- Dividends + Additional retained earnings
- Sales * Profit margin
- New retained earnings – Old retained earnings
In your case we will calculate the NI as follow:
Sales * Profit margin
= 27,000,000 * 0.08
= 2,160,000
Good luck :)
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