Assignment:
Flingers Inc. reveals the following information in their annual report for FY 2014.
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Earnings and Expenses
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Sales
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?$10,000,000
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Cost of goods sold
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? $5,000,000
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Pretax earnings
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? $500,000
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Selected Balance Sheet Items
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Merchandise inventory
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? $80,000
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Total assets
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? $2,000,000
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Upper management plans to cut cost of goods sold by? 5% for the coming year but retain the same sales. What will?Flingers' profit margin be for? 2015?
Provide complete and step by step solution for the question and show calculations and use formulas.