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

 

Ashford 6: – Week 5 – Discussion 2

 

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Reference the Discussion Forum Grading Rubric for guidance on how your discussion will be evaluated.

 

Profit   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 net-profit margin  for each of these years.  Comment on the profit margin trend.
Guided Response:
Let at least two of your peers posts know what you changes you would recommend to improve the net margin of the company