A retail company TGT has sales of $1,120,000 and total costs of $955,000, including depreciation and interest expenses. The average tax rate is 27%. Total assets are valued at $70,000 and total equity at $44,000. What comes closest to the profit margin?

A retail company TGT has sales of $1,120,000 and total costs of $955,000, including depreciation and interest expenses. The average tax rate is 27%. Total assets are valued at $70,000 and total equity at $44,000. What comes closest to the profit margin?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Question

A retail company TGT has sales of $1,120,000 and total costs of $955,000, including depreciation and interest expenses. The average tax rate is
27%.
Total assets are valued at $70,000 and total equity at $44,000.
What comes closest to the profit margin?
11%
18%
15%
8%
DOO

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