Flingen Inc. reveals the following information in their annual report for FY 2021 Selected Income Statement Items: Sales $9,000,000 Cost of goods sold $5,000,000 Pretax earnings $500,000 Selected Balance Sheet Items: Merchandise inventory $80,000 Total assets $2,000,000 What is Flingen's projected profit margin for 2022, assuming they plan to reduce cost of goods sold by 5.0% for the coming year while maintaining the same sales revenue? (Please round answer to nearest whole percentage). Group of answer choices 9% 10% 8% 7%
Flingen Inc. reveals the following information in their annual report for FY 2021 Selected Income Statement Items: Sales $9,000,000 Cost of goods sold $5,000,000 Pretax earnings $500,000 Selected Balance Sheet Items: Merchandise inventory $80,000 Total assets $2,000,000 What is Flingen's projected profit margin for 2022, assuming they plan to reduce cost of goods sold by 5.0% for the coming year while maintaining the same sales revenue? (Please round answer to nearest whole percentage). Group of answer choices 9% 10% 8% 7%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Flingen Inc. reveals the following information in their annual report for FY 2021
| Selected Income Statement Items: | |
| Sales | $9,000,000 |
| Cost of goods sold | $5,000,000 |
| Pretax earnings | $500,000 |
| | |
| Selected Balance Sheet Items: | |
| Merchandise inventory | $80,000 |
| Total assets | $2,000,000 |
What is Flingen's projected profit margin for 2022, assuming they plan to reduce cost of goods sold by 5.0% for the coming year while maintaining the same sales revenue? (Please round answer to nearest whole percentage).
Group of answer choices
9%
10%
8%
7%
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