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discusses accounting and financial information used by managers to make decisions. For example, the income statement provides the company s operating profit and net sales,

discusses accounting and financial information used by managers to make decisions. For example, the income statement provides the companys operating profit and net sales, which can be used to calculate the companys return on sales (profit margin). A sample income statement is displayed in the following figure, Figure 17.6, from your textbook. In this example, the profit margin is about 9.4%: Return on Sales = Net Income Before Taxes / Gross Sales 68,000/720,000=0.094 or 9.4% FIGURE 17.6 SAMPLE HARVEST GOLD INCOME STATEMENT.png Figure 17.6: Sample Harvest Gold Income Statement Why are financial ratios important data for managers to consider when making business decisions? Provide at least one example.

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