Debit Credit Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) office supplies Automobiles...

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2. Calculate the profit margin for year 2017 Profit Margin Choose Numerator: Choose Denominator: Profit Margin Profit margin

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Answer 1

Answer #1

Profit Margin
Choose Numerator	/	Choose Denominator	=	Profit Margin
Net Income	/	Total Revenues	=	Profit Margin
$ 1,70,200	/	$ 6,04,000	=	28%

Workings:
Total Revenues:
Fees earned	=	$ 5,74,000
Interest earned	=	$ 30,000
Total Revenues	=	$ 6,04,000
Less: Expenses
Depreciation expense- Automobiles	=	$ 26,500
Depreciation expense- Equipment	=	$ 22,000
Salaries expense	=	$ 1,85,000
Wages expense	=	$ 44,000
Interest expense	=	$ 34,200
Office supplies expense	=	$ 35,600
Advertising expense	=	$ 60,500
Repair expense- Automobiles	=	$ 26,000
Total Expense	=	$ 4,33,800
Net Income	=	$ 1,70,200

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Answer 2

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