Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How to compute for this following? 1. Net Prot Margin - SM Grocery store has a revenue of P8,000.00 for the month. After the cost

How to compute for this following?

image text in transcribed
1. Net Prot Margin - SM Grocery store has a revenue of P8,000.00 for the month. After the cost associated with buying inventory, maintaining a location, paying employees, taxes, interest, and other expenses, the owner has a net income of P2,000.00. - Interpret the result of your Net Prot Margin computation. What does it mean? 2. Asset Turnover Ratio - Imagine Company had an average assets of P5,000.00, and it made a revenue of P8,000.00 for the year. - The board of directors ask you with this specic ration, how would you interpret your computation to them? 3.E ui Multi lier Financial Levera e - Assume Company has a $5,000.00 average assets and $2,000.00 average equity determined during the year. - What does this multiplier/leverage means? Interpret

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

17th edition

1119503663, 1119571480, 1-119-50368-2, 111950368X, 978-1119503668

More Books

Students also viewed these Accounting questions