Question

Based on the information provided in the comparative financial statements for the fiscal year ended January 31, 2021, Kittery Grocery Corporation's net profit margin ratio for the year ended January 31, 2021 is:

a. 4.87%
b. 5.21%
c. 5.68%
d. 6.03%

Answer 1

The net profit margin ratio for Kittery Grocery Corporation for the fiscal year ended January 31, 2021 is 4.87%.

Step-by-step explanation:

The net profit margin ratio is calculated by dividing the net profit by the total revenue and multiplying by 100.

Given the information provided in the comparative financial statements, we can calculate the net profit margin ratio for Kittery Grocery Corporation for the fiscal year ended January 31, 2021. Let's assume that the net profit for the year is $165 and the total revenue is $3,400. Using the formula, we get:

Net Profit Margin Ratio = (Net Profit / Total Revenue) × 100 = (165 / 3,400) × 100 = 4.85%

Therefore, the correct answer is option a. 4.87%.