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Presented below is the comparative income statement of Edison Company for 2020 and 2019. Edison Company Income Statement For the Year Ended February 28 2020
Presented below is the comparative income statement of Edison Company for 2020 and 2019.
Edison Company Income Statement For the Year Ended February 28 | ||
2020 | 2019 | |
Sales | $187,821 | $107,685 |
Cost of Goods Sold | $110,590 | $69,844 |
Gross Profit | $77,231 | $37,841 |
Operating Expenses | ||
Administrative Expense | $22,829 | $12,087 |
Selling Expense | $22,737 | $24,931 |
Total Operating Expenses | $45,566 | $37,018 |
Other Income and Expenses | ||
Interest Expense | $1,571 | $850 |
Income Before Income Tax | $30,094 | $-27 |
Income Tax | $9,028 | $-8 |
Net Income (Loss) | $21,066 | $-19 |
Calculate the following ratios for both years. Enter net profit margin as a percentage.
2020 | 2019 | |
Net Profit Margin | Answer | Answer |
Time Interest Earned | Answer | Answer |
In which year does the company have a better performance with respect to the net profit margin calculated in part a)?
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