Compute the net-profit margin for each of these years

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Reference no: EM131396821

Accounting Discussions 1 and 2

Discussion1

Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story? How could liquidity ratios be used by investors to determine whether or not to invest in a company?

For a written transcript, please click here.

Guided Response:

Let at least two of your peers know how debt service ratios can be used by a lender in determining whether or not to lend money to a company.

Discussion 2

Profit Margin

Ashford University Discussion

Year Ending December 2012 Year Ending December 2011 Year Ending December 2010

 

Year Ending December 2012

Year Ending December 2011

Year Ending December 2010

Revenues

40,000

35,000

33,000

Operating Expenses




Salaries

15,000

10,000

9,000

Maintenance and Repairs

6,000

9,000

10,000

Rental Expense

2,500

2,500

2,500

Depreciation

2,000

2,000

2,000

Fuel

4,000

3,500

2,500

Total Operating Expenses

29,500

27,000

26,000

Operating Income

10,500

8,000

7,000

Sales and Administrative Expenses

6,000

4,000

3,000

Interest Expense

2,500

2,000

1,000

Net Income

2,000

2,000

3,000

Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the net-profit margin for each of these years. Comment on the profit margin trend.

For a written transcript, please click here.

Guided Response:

Let at least two of your peers know what you changes you would recommend to improve the net margin of the company.

Reference no: EM131396821

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