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Shelton Inc. has sales of $17.5 million, total assets of $13.1 million, and total debt of $5.7 million. If the profit margin is 6 percent, what is the net income?
Shelton Inc. has sales of $17.5 million, total assets of $13.1 million, and total debt of $5.7 million. If the profit margin is 6 percent, what is the net income?
Answer:$1,050,000Explanation:The computation of the net income is shown below:Net income = Sales revenue × profit margin percentage= $17,500,000 × 6%=$1,050,000To determine the net income we multiplied the sales revenues by its profit margin percentage so that the correct value could be arrived....
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