Financial information is presented below:
A. Operating expenses 28,000
B. Sales returns and allowances 7,000
C. Sales discounts 3,000
D. Sales revenue 150,000
E. Cost of goods sold 91,000

What is the net income?
What is the net sales?
What is the profit margin ratio?
Please explain how to find each.

Net Income  $21,000

Net Sales  $140,000

Operating Margin ratio = 14%

Explanation:

Net Income is calculated by subtracting operating expenses from gross income.

Net is is calculated by adjusting contra sales account balance is sales value+

Profit Margin ratio is the ratio of net profit to sales value.

                                                          $

Sales Revenue                             150,000

Sales Discount                             (3,000)

Sales returns and allowances     (7,000)

Net Sales                                      140,000

Cost of Goods sold                      (91,000)

Gross Income                                49,000

Operating Expenses                    (28,000)

Operating / Net Income                21,000

In the absence of interest expenses and tax rate operating income is considered as net income.

Operating Margin = ( $21,000 / $150,000 ) x 100 = 14%

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20