Answer:
40%
Explanation:
Total assets. $240,000
Less total liabilities ($130,000)
$110,000
Less common stock ($24,000)
Retained earnings at end $86,0000
Less Retained earnings at the beginning ($29,000)
Addition to retained earnings $57,000
Add dividends $6,400
Net profit earned $63,400
Add expenses $94,000
Revenue. $157,400
Therefore, company's net profit margin expressed as a percentage = Net profit earned / Revenue
= (63,400/157,400) × 100
= 40%
The company's net profit margin is 40%.
Given that,
Total assets (a) = $240,000
Total liabilities (b) = $130,000
Common stock (c) = $24,000
Dividend (d) = $6,400
Expenses (e) = $94,000
Retained earnings beginning (f) = $29,000
Company's net profit margin = [Net profit earned [tex]\div[/tex] Revenue] [tex]\times[/tex] 100
Where,
Net profit earned = [a - b - c + d - f ]
= [ $240,000 - $130,000 - $24,000 + $6,400 - $29,000]
= $63,400
Revenue = Net profit earned + e
= $63,400 + $94,000
= $157,400
By putting the value, we get
= [$63,400 [tex]\div[/tex] $157,400] [tex]\times[/tex] 100
= 0.40 [tex]\times[/tex] 100
= 40%
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