Question

The following information applies to the questions dlsplayed below Kaylee James, a connoisseur of ine chocoiate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a ine of hired อ5 manager. Your duties include mairearing re store's fir areal records The folowing transactions occurred in February, the first month of operators gourmet ice cream you have been a Recelived four shareholders' contributions toteling S27,800 cash to form the corporation ssued 500 shares of $0.0 par value common stock b. Pald three months rent for the store at $1760 per month (recorded as prepaid expenses c Purchased and received candy for $5,700 on account, due in 60 days d. Purchased supplies for $1,430 cash e Negotiened and signed a two-year $18,000 loan at the bank, recelving cash at the time t Used the money from (e) to purchese a computer for $3,250 for recordseeping and inventory trackingl: used the baiance for furniture and fixtures for the store g Paced·grand opening advert serment n the locai pepe, for $420 cash the ad ran in the current month h Made sales on Velentine's Day totaling $3,600, $2,710 was in cesh and the rest on accounts recelvable. The cost of the candy sold was $1,800 i Made·570 payment on accouts payable Incurred and paid employee wages of $2.000 Colected accounts receivable of $110 from customers m Made cesh sales of $2.600 during the rest of the month, The cost of the candy sold was $1410

Answer 1

A	B	C	D	E	F	G	H	I
2
3		Profit Margin Ratio can be calculated as follows:
4
5		Profit margin	=Net Income / Sales
6
7			2018	2017	2016
8		Sales	$93,500	$79,000	$53,000
9		Net Income	$21,400	$11,400	$3,500
10		Profit margin	22.89%	14.43%	6.60%	=F9/F8
11
12		Hence
13			Net Profit margin
14		2016	6.60%
15		2017	14.43%
16		2018	22.89%
17
18		b)
19
20		Since Net Profit margin increase from 6.6% in 2016 to 22.89% in 2018,
21		therefore the financial performance of the company has improved.
22		Thus the employee can be promoted.
23
24		Hence the answer is YES.
25