Question

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

$1,050,000

Step-by-step explanation:

The computation of the net income is shown below:

Net income = Sales revenue × profit margin percentage

= $17,500,000 × 6%

= $1,050,000

To determine the net income we multiplied the sales revenues by its profit margin percentage so that the correct value could be arrived.