175. The 2014 income statement of Cigmar Enterprises shows operating revenues of $120,500, selling expenses of $35,200, general and administrative expenses of $29,900, interest expense of $1,500, and income tax expense of $10,520. Cigmar's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2014. REQUIRED: Compute Cigmar's profit margin. What other information would you need in order to comment on whether this ratio is favorable? | |
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