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ACC205 week 5 DQ – RoyalCustomEssays

ACC205 week 5 DQ

ACC205 week 5 exercise
July 16, 2018
ACC205 week 5 final exam
July 16, 2018

ACC 205 Week 5 DQ: 01
Ratios provide the users of financial statements with a great deal
of information about the entity. Do ratios tell the whole story?
How could liquidity ratios be used by investors to determine whether or not to
invest in a company?.0001pt;
text-align:center;line-height:200%;background:white”>ACC 205 Week 5 DQ 2Profit Margin

Year Ending December 2012

Year Ending December 2011

Year Ending December 2010

Revenues

40,000

35,000

33,000

Operating Expenses

Salaries

15,000

10,000

9,000

Maintenance and
Repairs

6,000

9,000

10,000

Rental Expense

2,500

2,500

2,500

Depreciation

2,000

2,000

2,000

Fuel

4,000

3,500

2,500

Total Operating
Expenses

29,500

27,000

26,000

Operating Income

10,500

8,000

7,000

Sales and
Administrative Expenses

6,000

4,000

3,000

Interest Expense

2,500

2,000

1,000

Net Income

2,000

2,000

3,000

Above is a comparative income statement for Cecil, Inc. for the years 2010,
2011, and 2012. Calculate the profit margin for each of these
years. Comment on the profit margin trend.

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