ACC205 week 5 DQ
ACC205 week 5 exercise
July 16, 2018ACC205 week 5 final exam
July 16, 2018ACC 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.