Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of$2,000, Cost of Goods Sold of $15,000, other costs of $7,800, and an average tax rate of 34percent. What is the firm's profit margin?Please record your answer using the following format (12.54). Record your answer to twodecimal places. While the answer should be given as a percentage, do NOT place a "%" directlyafter the number. Do not type the parentheses: just type the number!

The objective of the question is to calculate the profit margin of Spelman Corporation. The profit…

Answered: Spelman Corporation has Sales of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of
$2,000, Cost of Goods Sold of $15,000, other costs of $7,800, and an average tax rate of 34
percent. What is the firm's profit margin?
Please record your answer using the following format (12.54). Record your answer to two
decimal places. While the answer should be given as a percentage, do NOT place a "%" directly
after the number. Do not type the parentheses: just type the number!

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