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  3. a company has the following transactions for the y

A company has the following transactions for the year:Sales revenue: $1,500,000Cost of goods sold: $900,000Administrative...

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Question

Accounting

A company has the following transactions for the year:

  • Sales revenue: $1,500,000
  • Cost of goods sold: $900,000
  • Administrative expenses: $120,000
  • Selling expenses: $180,000
  • Interest expense: $45,000
  • Tax rate: 30%
Requirements:

(a) Prepare the income statement. (b) Calculate the gross profit margin. (c) Determine the operating profit margin. (d) Compute the net profit margin.

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