Oil Field Services has net income of $120,400, total assets of $1,219,000, total equity of $694,100, and total sales of $1,521,700. What is the common-size percentage for the net income?

Question

Business

Maia Rosales

1 April, 03:20

Oil Field Services has net income of $120,400, total assets of $1,219,000, total equity of $694,100, and total sales of $1,521,700. What is the common-size percentage for the net income?

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Answers (1)

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Kaden Graves · Answer 1

7.91%

Explanation:

The computation of the common-size percentage for the net income is shown below:

= (Net income : Total sales) * 100

= ($120,400 : $1,521,700) * 100

= 7.91%

It shows a relationship between net income and total sales. Since we have to compute the common size percentage i. e means it always be in the denominator

All other information which is given is not relevant. Hence, ignored it