Question of the Week

If ABC Company had the following Income Statement figures, what is the Operating Margin of ABC Company?
Net Sales = $1,000,000; Cost of Goods Sold = $400,000; Net Profit = $300,000; Depreciation = $100,000

A) 40 percent
B) 10 percent
C) 30 percent
D) 20 percent


Answer:

The correct answer is c):

The operating margin is a very useful test of the efficiency of corporate management. Operating margin is determined by dividing net profit into net sales. The only way to determine if a companies operating margin is good is to compare it to that of other companies in the same industry.

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    References from trusted friends or family members can help you find a financial planner; however, keep in mind that your friends' financial situations and goals may differ from yours and, therefore, their planners won't necessarily be the best fit for you.The Certified Financial Planner (CFP) Board of Standards certifies financial planners and maintains an online list of certified financial planners on its CFP Board of Standards website.
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    Under the USA, registration as an IAR includes all of the following EXCEPT:

    Under the USA, registration as an IAR includes all of the following EXCEPT: A. Minimum net capitalB. Passing a qualification examC. Filing a consent to service of processD. Posting a surety bond The correct answer is "A", since only an IA would need to prove minimum net capital requirements.