Profit margin is a measure to calculate a ratio which measures the profitability of the company. It is calculated by the dividing the net profits by the revenue of the company. Profit margin is used to know the % of profits earned over revenue. To indicate: Profit Margin of T and that ratio depicting about the company.

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Chapter 4, Problem 4.9.4AAMCP

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Concept Introduction:Profit margin is a measure to calculate a ratio which measures the profitability of the company. It is calculated by the dividing the net profits by the revenue of the company. Profit margin is used to know the % of profits earned over revenue.

To indicate: Profit Margin of T and that ratio depicting about the company.

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Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).

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owing income statement accounts in the popup window, E t for the year. ow for the year. Data Table nt for the year. at below. (Round to the nearest dollar. (Click on the following icon in order to copy its contents into a spreadsheet.) ncome Statement Income Statement Accounts for the Year Ending 2017 Balance nding December 31, 2017 Account Cost of goods sold Interest expense Taxes Revenue Selling, general, and administrative expenses Depreciation $341,000 $75,000 59,600 S743,000 $62,000 $116,000 Print Done %24 %24 %24