Question

Results from Nedlog Company are as follows: Operating Income $8486 Total Assets $15262 Current Liabilities $3869 Sales $34655 Target Rate of Return (Cost of Capital) 15% Calculate Sales Margin. If your answer is a percentage, input it to one decimal place. For example .1222 should be input as 12.2. Otherwise round your answer to one decimal place.

Answer 1

sales margin = 24.4%

Step-by-step explanation:

given details:

Operating Income - $8486

Total Assets-$15262

Current Liabilities- $3869

Sales-$34655

we know that sales margin is given as

Sales Margin
`= (operating\ Income)/(Sales)`

where,

operating income is $8486

sales - $34655

putting all value in the formula to get sales margin value

sale margin = \frac{8486}{34655}

sales margin = 0.244

sales margin = 24.4%