High School

Billie Jean's Bridals has the following financial data:

- Total assets: $350,000
- Current assets: $74,000
- Total liabilities: $280,000
- Accounts receivable: $12,000
- Net sales: $64,000
- Net profit after taxes: $23,000

Calculate the retailer's net profit percentage.

A) 18.75 percent
B) 20 percent
C) 25 percent
D) 31.1 percent
E) 35.9 percent

Answer :

Final answer:

The net profit percentage for Billie Jean's Bridals is calculated by dividing the net profit after taxes by net sales and then multiplying by 100. The result is 35.9375%, which rounds to 35.9%, So, the correct option is E) 35.9 percent.

Explanation:

To calculate the retailer's net profit percentage, we use the formula:

Net Profit Percentage = (Net Profit After Taxes / Net Sales) × 100

Using the figures provided:

Net Profit Percentage = ($23,000 / $64,000) × 100 = 35.9375%

This result is closest to option 35.9 percent, which should be rounded down to match the options given.

Thus, the net profit percentage for Billie Jean's Bridals is 35.9 percent.

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