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The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively. What is ABC's profit margin (round to nearest whole percentage, just put in the number with no %)?

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Answer: 12%

Explanation:

The Net Profit Margin refers to the percentage of Net Income from sales that a company got in the period of record. A higher margin is usually preferred to a lower one.

Profit margin ratio = Net income/ Sales

Profit margin ratio  = 240,000 / 2,000,000

Profit margin ratio = 12%

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