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Analyze the income statement for LMN Inc. for the year ended December 31, 2023, to assess its profitability and cost efficiency. LMN Inc. Income Statement
Analyze the income statement for LMN Inc. for the year ended December 31, 2023, to assess its profitability and cost efficiency.
LMN Inc. Income Statement | Year Ended December 31, 2023 |
---|---|
Revenue | |
Sales Revenue | $800,000 |
Interest Income | $15,000 |
Total Revenue | $815,000 |
Expenses | |
Cost of Goods Sold | $300,000 |
Operating Expenses | $250,000 |
Depreciation Expense | $40,000 |
Interest Expense | $20,000 |
Income Tax Expense | $70,000 |
Total Expenses | $680,000 |
Net Income | $135,000 |
Questions:
- Calculate the gross profit margin and discuss its importance in assessing the company's profitability.
- Analyze the operating profit margin and explain how it reflects the company's operational efficiency.
- Compute the net profit margin and discuss its significance in evaluating overall profitability.
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