Question
Flingers Inc. reveals the following information in their annual report for FY 2014. Earnings and Expenses Sales $10,000,000 Cost of goods sold $5,000,000 Pretax earnings
Flingers Inc. reveals the following information in their annual report for FY 2014.
Earnings and Expenses | |
Sales | $10,000,000 |
Cost of goods sold | $5,000,000 |
Pretax earnings | $500,000 |
Selected Balance Sheet Items | |
Merchandise inventory | $80,000 |
Total assets | $2,000,000 |
Upper management plans to cut cost of goods sold by 5% for the coming year but retain the same sales. What willFlingers' profit margin be for 2015?
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Financial Accounting IFRS
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
2nd edition
1118285909, 1118285905, 978-1118285909
